Axel Rudolph, analyst at Commerzbank, points out that over the past few days EUR/USD reached the April and May lows as well as the three month resistance line at 1.1099/1.1110 which capped as expected.
“Further range trading within last week’s extremes at 1.0927/1.1109 is to be seen. 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 1.1257 back on the cards.”
“Support below the recent lows at 1.0927/26 comes in at the June 2016 low and the March 2017 high at 1.0912/07.”
“Failure at 1.0927/26 would negate our bullish outlook and put the January 2017 low at 1.0829 and the 78.6% Fibonacci retracement of the 2017-2018 advance at 1.0814 on the map.”