EUR/USD still points to a test of 1.0700 – Commerzbank

According to technicals, the pair could still attempt a test of the 1.0700 handle and above, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/USD has seen a slight erosion of the short term resistance line, which has not been sustained – it is too early to say whether this is a false break or just premature. The intraday Elliott wave counts are conflicting but 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 1.0474 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”.