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Karen Jones, analyst at Commerzbank, explains that the EUR/USD pair has broken up from a falling wedge pattern, but has faltered ahead of initial resistance at the 200 day ma at 1.1478 and the 1.1570 January high together with the 55 week ma at 1.1630.

Key Quotes

“This is a reversal pattern and it is bullish it implies that 1.1176 is an interim low in place. Dips should find initial support at the 1.1329 20 day ma, this should now hold the downside for further upside attempts.”

“Below 1.1185/75 (61.8% retracement) lies the 1.1110, the May 2017 low and the 1.0814/78.6% retracement.”