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Karen Jones, analyst at Commerzbank, explains that the EUR/USD pair last week broke down from the base of the range at 1.1216 and sold off to the 61.8% Fibonacci retracement of the 2017- 18 advance at 1.1186, which held the initial test.

Key Quotes

“The bounce from here is likely to be fairly tepid as there is now a considerable amount of resistance above the market extending up to the 200 day ma at 1.1495. Below 1.1185/75 lies the 1.1110, the May 2017 low and the 1.0814/78.6% retracement.”

“Rallies will find initial resistance at 1.1315 the 20 day ma, which guards the 1.1420 end of February high and the 1.1438 downtrend.”