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In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s squeeze higher could extend to the 1.1735/1.1875 area.

Key Quotes

EUR/USD last week reached our target band at 1.1553-1.1424 and has bounced from this region. It is the location of the November 2017 low, the 200 week ma and the 50% retracement of the move from 2017-2018. Rallies have reached the 23.6% retracement at 1.1723. It is unclear if the correction is over or not and we are unable to rule out a deeper retracement to 1.1735, 1.1875″.

“Below 1.1420 would introduce scope to the 61.8% retracement at 1.1186″.