Axel Rudolph, analyst at Commerzbank, points out that EUR/USD pair had a volatile day yesterday and revisited its early September low at 1.0926 which held and suggests that provided that this continues to be the case, they expect last week’s and yesterday’s highs at 1.108/874 to be retested and eventually overcome.
“The April and May lows as well as the three month resistance line at 1.1106/10 would then be in focus. Only a daily chart close above the August 26 high at 1.1164 would confirm a bottoming formation and put the 200 day ma at 1.1260 back on the cards.”
“Support below the recent lows at 1.0927/26 comes in at the June 2016 low and the March 2017 high at 1.0912/07.”
“Failure at 1.0927/26 would negate our bullish outlook and put the January 2017 low at 1.0829 and the 78.6% Fibonacci retracement of the 2017-2018 advance at 1.0814 on the map.”