EUR/USD has started to erode nearby resistance levels, notes Commerzbank.
“While this does suppose that the market remains upside corrective, how far the correction will extend is still not clear,” CB adds.
“We have two possible Elliott wave counts on the daily chart, the first lies at 1 .3669, the second at 1.3775. We will attempt to trade from the short side while in between this zone,” CB advises.
“Intraday charts are giving conflicting signals, but we look for a test of 1.3677/90 (early June high and Fibo). Our longer term view remains bearish while we are below 1.40, the Elliott wave count on the daily chart is suggesting that re bounds should not exceed the 1.3775 zone,” CB projects.
