EUR/USD: the euro is entering into short-term consolidation (Commerzbank)

Commerzbank notes that the EUR/USD is facing short-term consolidation.

"Last week's EUR/USD rally failed just before the 20-day moving average and the Fibo resistance at 1.1610/24, and we can now see consolidation.

A first support level is at 1.1508, ahead of 1.1411, the 78.6% retracement. Note that Elliott's wave count suggests that the rally will fail, and as a precaution we have partially closed our long positions and raised the stops on the rest.

Only a move above 1.1625 could again neutralise the charts, allowing acceleration to the 1.1790/1.1815 zone.

We continue to favour a rise, but there is still work to be done."