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In light of the ongoing sell off, the pair could now retreat to the 1.1411 level, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

EUR/USD is on the defensive and has eroded the 1.1510/08 key support. This de stabilises the chart and allows for losses to 1.1411, the 78.6% retracement. This is seen as the last defence for the 1.1330 200 week ma and the 1.1301 recent low. We note that the Elliott wave count is still labelling this as corrective only and ideally we will see 1.1411 hold and provoke reversal”.

“Rallies will find initial resistance at 1.1607/41, the 20 and 55 day ma and only above here will allow for another fun up to the 1.1790/1.1815 region”.