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Axel Rudolph, analyst at Commerzbank, suggests that the EUR/USD pair is nearing the 55 day moving average at 1.1261 and they continue to favour the topside.

Key Quotes

“For now they are unable to rule out a retest of the 1.1110 April low. If seen, we look for this to hold. Be advised that the pattern being traced out is a potential large reversal pattern.”

“We have positive divergence on the weekly RSI and a Tom DeMark 13 count on the weekly chart as well and hence there is a high chance of bullish reversal soon being seen. Overhead lies the 100 day ma at 1.1319 and the September-to-May resistance line at 1.1339. Further up meanders the 200 day moving average at 1.1400. This would have to be bettered for a bullish reversal to be confirmed.”

“Support at 1.1110 is regarded as the break down point to the 2018-2019 support line at 1.1100 and the 1.0814 78.6% Fibonacci retracement.”