Karen Jones, analyst at Commerzbank, points out that the EUR/USD pair has continued to recover off the 1.1176 recent low, but has yet to clear even the 20 day ma at 1.1277, but this is now exposed and they favour a move higher.
Key Quotes
“We suspect that it is trying to base but needs to do more work (we note the 13 count on the weekly chart and this adds weight to the idea of a potential base). Once above the 20 day ma, we should see movement towards the 200 day ma at 1.1451, the cross should target the 1.1570 January high, together with the 55 week ma at 1.1568.”
“Below 1.1185/75 (61.8% retracement) lies the 1.1110, the May 2017 low and the 1.0814/78.6% retracement.”
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