EUR/USD: the euro remains on the defensive on the forex (Commerzbank)

According to Karen Jones, an analyst at Commerzbank, the EUR/USD remains on the defensive, having had no impact on the 55 and 100-day moving averages at 1.1291/1.1342.

"Attention is now focused on the recent low of 1.1176. The number of Elliott intraday waves is negative and the DMI is also negative. Below 1.1185/75 (61.8% retracement) are 1.1110, May 2017's low and the 78.6% retracement at 1.0814.

We suspect that the market is trying to form a base and move up, but it needs to do more work to achive this (we note that the count of the 13 on the weekly chart reinforces the prospect of a potential base). The initial resistance is the limit of the 100-day moving average at 1.1342 and the resistance line at 1.1376, ahead of the 200-day moving average at 1.1433."