EUR/USD could attempt some consolidation near-term – Commerzbank

In view of Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, some consolidation in the pair is not ruled out in the short-term horizon.

Key Quotes

“EUR/USD finally eroded the 1.0989 mid-November low, it has traded below here BUT NOT closed below here – this is not a valid break lower and we may well see some near term consolidation. Failure at 1.0980 targets the 1.0943 78.6% retracement. This is seen as the last defence for the 1.0879 October low and the 1.0814 Fibo retracement, and if seen, we will look for signs of reversal from here”.

“It will stay under pressure while capped by last week’s high at 1.1097 this guards the 1.1180 October high”.