According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, technicals are now pointing to further weakness in spot.
“EUR/USD is easing slowly lower from the 78.6% retracement at 1.1976. A close below 1.1765 55 day ma and preferably below 1.1712 the recent low is needed to alleviate immediate upside pressure. The intraday Elliott wave counts have finally turned more negative and we now look for some further weakness. The Fibonacci retracement at 1.1976 is regarded as the last defence for the 1.2092 September high”.
“Below the 55 day ma alleviates upside pressure – below 1.1712 the 21st November low should negate upside pressure and allow for slippage back to the 1.1553 7th November low”.
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