EUR/USD bid above 1.0476, could test 1.0700 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s could attempt a test of the 1.0700/07 band in the near term.

Key Quotes

“EUR/USD has eroded the 1.0586 resistance line. The intraday Elliott wave counts are positive and suggest a test of 1.0700/07, the recent spike high and the 38.2% retracement. There is scope for 1.0875 the December high. The market stays bid near term while above the 1.0476 20 day ma”.

“Failure here would cast attention back to the 1.0372/40 recent lows. We await a close below the 1.0372/40 lows from mid December 2016 to trigger another leg lower. Below 1.0340 will target parity and the 78.6% retracement at .9900 of the move 2000 to 2008”.