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As long as EUR/USD appears underpinned by the 1.1267/70 zone, there is still the chance of a recovery to the 1.1540 region and above, noted Karen Jones, head of FICC Technical Analysis at Commerzbank.

Key Quotes

EUR/USD has again sold off and the move is now approaching the low 1.1300 region. The market remains underpinned by the 2016-2019 uptrend at 1.1307. We have additional support offered by the 1.1267/70 November and December lows. Provided that the market holds here we favour a recovery to the 1.1543 200 day ma and the 1.1623 mid October high and slightly longer term we target 1.1745, the 55 week ma”.

“Failure at 1.1267 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”.