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Karen Jones, analyst at Commerzbank, points out that the EUR/USD pair has eroded the 1.1185/75 supports and has slide into 22 month lows.

Key Quotes

“Intraday Elliott wave counts are negative and the DMI is also negative. Below 1.1185/75 (61.8% retracement) lies the 1.1110, the May 2017 low and the 1.0814/78.6% retracement.TD support on the weekly chart lies at 1.0963. Nearby resistance is offered by the 55 and 100 day moving averages at 1.1287/1.1339 and the market is directly offered below here.”

“We suspect that the market is trying to base but needs to do more work (we note the 13 count on the weekly chart and this adds weight to the idea of a potential base). Initial resistance is the 100 day ma at 1.1339 and the resistance line at 1.1373 ahead of the 200 day ma at 1.1428.”