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The pair could retest the 1.1790 area and beyond on a break above the 1.1592/1.1619 band, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

EUR/USD has sold off towards and is recovering just ahead of 1.1411, the 78.6% retracement. We will ideally see the market hold and reverse here. Note that the Elliot wave count has turned more negative. Rallies will find initial resistance at 1.1592/1.1619, the 20 and 55 day ma and only above here will allow for another run up to the 1.1790/1.1815 region. We continue to favour the topside but there is more work to be done”.

“The 1.1411 level is seen as the last defence for the 1.1325 200 week ma and the 1.1301 recent low”.