In light of the recent price action, EUR/USD could extend the leg lower to the 1.1066 level, noted Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.
“EUR/USD came under increasing downside pressure on Friday and we would allow for a deeper sell off to the uptrend at 1.1066. Given that the intraday Elliott wave signals have turned negative, the risk has increased for a break lower this would target the 1.0981 29th November low and neutralise the immediate outlook.”
“Overhead the market is facing tough resistance at 1.1184-1.1240 – namely the 55 week ma, the 2019-2020 down channel and the recent high. This guards the 200 week ma at 1.1359, which continues to represent a critical break point medium term.”