In light of the recent price action, EUR/USD could extend the leg lower to the 1.1066 level, noted Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.
“EUR/USD came under increasing downside pressure on Friday and we would allow for a deeper sell off to the uptrend at 1.1066. Given that the intraday Elliott wave signals have turned negative, the risk has increased for a break lower this would target the 1.0981 29th November low and neutralise the immediate outlook.”
“Overhead the market is facing tough resistance at 1.1184-1.1240 – namely the 55 week ma, the 2019-2020 down channel and the recent high. This guards the 200 week ma at 1.1359, which continues to represent a critical break point medium term.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.