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According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair should keep looking south while below 1.1723/90.

Key Quotes

EUR/USD sold off yesterday charting an outside day to the downside. Rallies have not been enough to dislodge any resistance of note. For now we will assume while below the 55 day ma at 1.1723 and the last week’s high at 1.1790 a downside bias remains. The market remains on the defensive currently and attention stays on the 1.1510/08 recent lows and below here the 200 week ma at 1.1382″.

“A recovery above 1.1790 will target 1.1855. Above 1.1855 we look for a deeper retracement to the 1.1930 55 week ma, with scope for the 1.1986 200 day ma, where we suspect that it will fail”.