Axel Rudolph, analyst at Commerzbank, explains that EUR/USD pair has come off last week’s high at 1.1084 and is now expected to oscillate around the 1.1000 mark before attempting to reach the 1.1084 high and above, provided that the current September low at 1.0926 underpins, of course.
“If the 1.1084 high were to be bettered, the April and May lows at 1.1110/1.1106 as well as the three month resistance line at 1.1111 will be in focus. Only a daily chart close above the August 26 high at 1.1164 would confirm a bottoming formation and put the 200 day ma at 1.1261 back on the cards. Ideally we would like the 55 week ma at 1.1318 to be exceeded as well.”
“Support below yesterday’s low at 1.0985 comes in at the current September low at 1.0926. Below the 1.0926 low lie the June 2016 low and the March 2017 high at 1.0912/07. Further down sit the January 2017 low at 1.0829 and the 78.6% Fibonacci retracement of the 2017- 2018 advance at 1.0814.”
“The cross will need to regain the 55 week ma and downtrend channel resistance line at 1.1318/40 to generate upside interest.”