According to Senior Analyst Axel Rudolph at Commerzbank, the pair still looks to a potential test of the 1.1510/08 area.
Key Quotes
“EUR/USD has broken down from its converging range and still has the 1.1510/08 May and June lows in its sights, despite its recent attempt to reach the 55 day moving average at 1.1665. The cross remains offered below the past couple of weeks’ highs at 1.1745/50″.
“Below recent lows at 1.1530/08 sits the 50% retracement of the 2017- 18 rise at 1.1448 as well as the 200 week moving average at 1.1368″.
“On the topside the key level is 1.1790, the July peak, a recovery above which would target the 38.2% Fibonacci retracement at 1.1855. Above 1.1855 we would look for a deeper retracement to the 55 week moving average at 1.1935 with scope for the 200 day moving average at 1.1976 to be touched as well. There we would suspect the cross to fail, though”.
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