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 attain the 1.1756 four-month downtrend.
RSI has diverged
“EUR/USD’s new low at 1.1522 was once now not demonstrated by means of the each day RSI and the market has corrected greater to attain the downtrend, which these days is positioned at 1.1620.”
“The intraday Elliott wave counts continue to be high quality and we would permit for a deeper retracement to 1.1756 four-month downtrend.”
“Below 1.1522 lies the 50% retracement of the cross from 2020 and the March 2020 excessive at 1.1492/95.”
“Key help is the preceding downtrend (from 2008) which is now placed at 1.1395.”