EUR/USD has eroded its accelerated downtrend. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to head towards the 1.1746 four-month downtrend.

Accelerated downtrend eroded

“EUR/USD has broken higher through the accelerated downtrend as suspected.”

“The intraday Elliott wave counts remain positive and we would allow for a deeper retracement to 1.1746 four-month downtrend.”

“Dips lower are indicated to hold around 1.1565. Below 1.1522 (last week's low) 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.”