Karen Jones, analyst at Commerzbank, notes that the EUR/USD pair has sold off to and remains underpinned by the 1.1337 uptrend.
“The market is currently pretty neutral, but we suspect that the downside is now fairly limited. Dips lower should be contained by the 200 week ma at 1.1326 and the 2016-2019 uptrend at 1.1306.”
“We favour a recovery to the 1.1582 200 day ma and the 1.1623 mid-October high and slightly longer term we target 1.1772, the 55 week ma.”
“Failure at 1.1267 will trigger losses to the 1.1216 recent low and the 61.8% Fibonacci retracement of the 2017-18 advance at 1.1186. Please note that we continue to regard the 1.1216 recent low as an interim low for the market.”