In view of Karen Jones, Analyst at Commerzbank, EUR/USD continues to be range bound but is once more trying to reach the 55 day moving average at 1.1442.
“The market needs to overcome the November high at 1.1500 to alleviate recent downside pressure and allow for gains to 1.1555/1.1622 (2018 downtrend and 16th October high). Dips lower will ideally be contained by the 1.1267 late November low. This guards the 1.1216 November low.”
“Below the 1.1216 November low lies the 61.8% Fibonacci retracement of the 2017-18 advance at 1.1186. Failure there would put the late May and June 2017 lows at 1.1119/10 on the cards.”
“Long term trend (1-3 months): A rise above the recent high at 1.1625 would confirm a trend reversal and put the 55 week moving average at 1.1836 back on the cards.”