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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.

Key Quotes

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″.