EUR/USD remains offered below 1.0680 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s stance remains offered while below 1.0680.

Key Quotes

“EUR/USD has seen a recovery following its unsustained break to a marginal new low, the RSI has diverged which points to a loss of downside momentum. We await a close below the 1.0372/66 lows from mid December 2016 to trigger another leg lower. Meanwhile it is unclear if this is a premature break lower or a false break – but it is also struggling to also clear resistance. Below 1.0340 will target parity and the 78.6% retracement at .9900 of the move 2000 to 2008”.

“The market recently failed just ahead of the 55 day ma at 1.0680 and is directly offered below this level. Very near term the intraday Elliott wave counts are suggesting scope to retest this resistance”.