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In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s attention appears to have shifted to the 1.1790 region.

Key Quotes

EUR/USD has started to erode the short term downtrend. The break has not been sustained and we are unsure if this was a premature break or a false break. It is side lined and neutral. Currently attention has reverted to 1.1790, the July peak. A recovery above 1.1790 will target 1.1855. Above 1.1855 we look for a deeper retracement to the 1.1939 55 week ma, with scope for the 1.1978 200 day ma, where we suspect that it will fail”.

“The market is now bid above 1.1575 the July low. Failure here would cast attention on the 1.1510/08 recent lows and below here lies the 200 week ma at 1.1373″.