EUR/USD is pretty close to its 2012-2014 uptrend at 1.3511, notes Commerzbank.
“This together with the 1.3503 recent low represents the key break down point to the 200 week ma at 1.3427 and beyond to 1.3295 the November 2013 low,” CB adds.
“Of more interest however are the intraday Elliott wave counts, which are suggesting any rebounds are likely to terminate circa 1.3565 prior to the next leg lower taking hold,” CB projects.
“The outlook is neutral to negative while trading below the 55 and 200 day moving averages at 1.3656/77,” CB adds.
In line with this view, CB booked profit on its EUR/USD short from 1.3650 at market . CB runs a limit order to re-sell at 1.3565, with a stop at 1.3660.
