EUR/USD to extend its advance towards the 1.1756 mark – Commerzbank

EUR/USD has reached the near-term downtrend at 1.1620. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to reach the 1.1756 four-month downtrend.

RSI has diverged

“EUR/USD’s new low at 1.1522 was not confirmed by the daily RSI and the market has corrected higher to reach the downtrend, which today is located at 1.1620.”

“The intraday Elliott wave counts remain positive and we would allow for a deeper retracement to 1.1756 four-month downtrend.”

“Below 1.1522 lies the 50% retracement of the move from 2020 and the March 2020 high at 1.1492/95.”

“Key support is the previous downtrend (from 2008) which is now located at 1.1395.”