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Axel Rudolph, analyst at Commerzbank, suggests that for the EUR/USD pair, 55 day moving average at 1.1237 is back in play after it retested its April low at 1.1110 before recovering.

Key Quotes

“We need to overcome the 55 day moving average in order to alleviate downside pressure. Be advised that as long as 1.1110/06 holds the pattern being traced out is a potential large bullish reversal pattern.”

“Overhead lie the 55- and 100-day moving averages at 1.1237 and 1.1297 as well as the September-to-May resistance line at 1.1313. Further up meanders the 200 day moving average at 1.1381.”

“Support at 1.1110/06 is regarded as the break down point to the 2018-2019 support line at 1.1096 and the 1.0814 78.6% Fibonacci retracement.”