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According to Karen Jones, analyst at Commerzbank, EUR/USD pair remains broadly side lined but they are viewing this as a potential base, with initial upside resistance at its 6 month resistance line at 1.1454.

Key Quotes

“Directly above here lies the 200 day ma at 1.1505. It has not cleared the 100 day ma at 1.1388 yet but we look for it to remain underpinned by the 1.1216 November low. We continue to favour recovery. Above the 200 day ma will re-target the 1.1623 mid-October high and slightly longer term we look for gains to 1.1667, the 55 week ma.”

Long term trend (1-3 months): A rise above the recent high at 1.1623 would confirm a trend reversal and put the 55 week moving average at 1.1723 back on the cards.”