EUR/USD seems to have gone into a consolidation phase around 1.1650 on Wednesday. In the view of Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, the pair is set to see gains towards the four-month downtrend at 1.1741.

Attention is on the four-month downtrend at 1.1741

“EUR/USD is in recovery mode near-term. The intraday Elliott wave counts remain positive and we would allow for a deeper retracement to the 1.1741 four-month downtrend.”

“Dips lower are indicated to hold around 1.1600. 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.”