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Karen Jones, analyst at Commerzbank, suggests that the EUR/USD pair has started to erode its 55 and 100 day moving averages at 1.1387, but as we have yet to close above here, which is expected to trigger a rally towards the 200 day ma at 1.1508.

Key Quotes

“We look for it to remain underpinned by the 1.1216 November low. We continue to favour recovery this week. Above the 200 day ma will re-target the 1.1623 mid October high and slightly longer term we look for gains to 1.1685, the 55 week ma.”

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.”