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Karen Jones, analyst at Commerzbank, suggests that the EUR/USD pair has eroded the 20 day ma and attention is on the 55 day ma at 1.1263.

Key Quotes

“For now, we are unable to rule out a retest of the 1.1110 support but, if seen, we look for this to hold (this is less favoured). Be advised that the pattern being traced out is a potential large reversal pattern.”

“We have divergence of the weekly RSI and a 13 count on the weekly chart as well and hence there is a risk of bullish reversal. Overhead lies the 100 day ma at 1.1320 and the resistance line at 1.1342 ahead of the 200 day ma at 1.1402. Only above the 200 day ma would this imply a bullish reversal.”

“Support at 1.1110 is regarded as the break down point to 2018-2019 support line (connects the lows) at 1.1052, the 1.0963 TD support and the 1.0814/78.6% retracement.”