The recent rebound from the 1.1110 area could extend further and test the 55-day SMA near 1.1240, according to Senior Technical Analyst at Commerzbank Axel Rudolph.
“EUR/USD‘s bounce off the April low at 1.1110 nears the 55 day moving average at 1.1237. We need to overcome the 55 day moving average in order to alleviate downside pressure”.
“Be advised that as long as the recent lows at 1.1110/06 hold 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 1.1295 as well as the September-to-May resistance line at 1.1310. Further up meanders the 200 day moving average at 1.1387″.