EUR/USD held steady to slightly higher last week, and the market is approaching our first corrective target at 1.3670 (the 200 day ma is also found here at 1.3672), notes Commerzbank.
“Failure here will see attention revert to the 1.3503 recent low and the 1.3482 2012 -2014 uptrend. This remains a key break down point to 1.2750,” CB adds.
“Please note the TD perfected set up on the daily chart and the fact that the Elliot wave count is suggesting that this is the end of the move – we should now see failure. Above 1.3690 will see a slightly deeper retracement to 1.3775,” CB projects.
“We will attempt to trade from the short side while below he re. Our longer term view remains bearish,” CB advises.
In line with this view, CB maintains a short EUR/USD position from 1.3650, with a stop at 1.3710, and a target at 1.3350.
