EUR/USD should hold initial test at 1.0569 – Commerzbank

Axel Rudolph, Senior Technical Analyst at Commerzbank, expects sellers to find initial support in the 1.0570 area.

Key Quotes

“EUR/USD continues to hold around the 1 1/2-, 17- and 32- year uptrend lines at 1.0682/14”.

“The current November low at 1.0569 will need to be slipped through on a closing basis to confirm the move lower. However the move to a new low last week has been accompanied by a TD perfected set up on the daily chart and there are 13 counts on the intraday charts and we would allow this to hold the initial test. Below the current November low at 1.0569 lie the 1.0523 December 2015 low and the 1.0457 March 2015 low”.

“Initial resistance is seen at the 1.0821 March low and the 1.0851 October low. Expect to see a recovery bounce over the next few days”.