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In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair continues to target the 1.1400 area in the medium term.

Key Quotes

EUR/USD continues to recover following last week’s key day reversal. The daily RSI also did not confirm the new low and there is a loss of downside momentum, and we will allow for a corrective rebound. It is likely that we will see a rally towards the 1.1747 resistance line. This guards the recent high at 1.1853/55″.

“Medium-term we continue to target the 200 week ma at 1.1400. We would expect this to hold the initial test and provoke some profit taking. Below 1.1400 would introduce scope to the 61.8% retracement at 1.1186″.