Karen Jones, Head of FICC Technical Analysis at Commerzbank, notes that the negative outlook for the pair remains despite recent price developments.
“EUR/USD turned bullish on Friday, indicating a slowdown in downward pressure. The Intraday Elliott Wave counts indicate that recovery attempts will be difficult. The focus is on the recent low of 1.1027 and the base of the downside 1.0948. Among them is the 78.6% retracement of 1.0814. ”
“Resistance is at 1.1283 with the 200-day MA followed by the 2018-2019 downlink and the 55-week MA of 1.1338/58. A weekly course is needed to make the outlook positive. ”