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Karen Jones, Analyst at Commerzbank, suggests that the EUR/USD has charted an outside day to the upside following a slight erosion of the 1.1300 August and October lows, suggesting a reluctance to break down further and suggests another stab at recovery.

Key Quotes

“The market needs to overcome the current November high at 1.1500 to alleviate immediate downside pressure and allows for gains to 1.1581/1.1622 (2018 downtrend and 16th October high).”

“Below the 1.1216 current November low lies the 61.8% Fibonacci retracement of the 2017-18 advance at 1.1186. Failure there would put the late May and June 2017 lows at 1.1119/10 on the cards.”

“A rise above the recent high at 1.1625 would confirm a trend reversal and put the 55 week moving average at 1.1852 back on the cards.”