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Karen Jones, analyst at Commerzbank, explains that the EUR/USD pair has traded through but not closed below December lows of 1.1265.

Key Quotes

“Provided that the market holds here, then they favour a recovery to the 1.1535 200 day ma and the 1.1623 mid October high and slightly longer term we target 1.1723, the 55 week ma. Yesterdays price action was nearly a key day reversal and we will reattempt long positions.”

“Failure at 1.1267 on a closing basis will trigger losses to the 1.1216 recent low and the 61.8% Fibonacci retracement of the 2017-18 advance at 1.1186. Please note that we continue to regard the 1.1216 recent low as an interim low for the market.”

“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.”