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In opinion of Karen Jones, Team Head FICC Technical Analysis Research, EUR/USD could re-test the 1.1240 region on a close above the 1.1176/81 area.

Key Quotes

EUR/USD last week sold off to, tested and reversed from 1.1110/06, the April and May lows, last week. We would consider a close above 1.1176/81 (mid June low and March low) enough of a trigger to signal recovery to the 55 day ma lies 1.1242 and highs last week at 1.1285. But while capped here it will remain on the defensive”.

“Below 1.1100 will introduce scope to the 1.0974 2018-2019 support line, which in turn guards the 78.6% retracement at 1.0814/78.6% retracement”.

“Initial resistance lies at 1.1285, the 11th July high and this guards the more important 55 week ma at 1.1372″.