EUR/USD supported in the mid-1.0500s – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair appears initially supported near 1.0550 amidst a broader ‘a-b-c’ correction higher.

Key Quotes

“EUR/USD saw a minor erosion of the 1.07 recent spike high, the Elliott wave count is suggesting that this is an ‘a-b-c’ correction higher and we have a 13 count on the 240 minute chart so will attempt tentative shorts. Should the market go above 1.0720, we remain unable to rule out a move to 1.0820 50% retracement and 1.0875 the December high. Nearby the support line lies 1.0549 and failure here would cast attention back to the 1.0372/40 recent lows”.

“Below 1.0340 will target parity and the 78.6% retracement at .9900 of the move 2000 to 2008”.