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Karen Jones, analyst at Commerzbank, suggests that the EUR/USD pair has closed below major supports level of 1.1270/67 but it has not provoked a big sell off and is not exactly convincing.

Key Quotes

“These are the late November and December lows. Provided that the market holds here we favour a recovery to the 1.1531 200 day ma and the 1.1623 mid-October high and slightly longer term we target 1.1723, the 55 week ma. For now it is on the defensive and will have to regain 1.1342 to alleviate immediate downside pressure.”

“Failure at 1.1267 on a closing basis will trigger losses to the 1.1216 recent low and the 61.8% Fibonacci retracement of the 2017-18 advance at 1.1186. Please note that we continue to regard the 1.1216 recent low as an interim low for the market.”