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According to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, EUR/USD could extend the recovery to the area above 1.1100 the figure.

Key Quotes

EUR/USD last week eroded the four month downtrend and given that the market has recently reversed from the base of the weekly channel at 1.0892, we view the market as a base. We look for recovery to initially the mid September high at 1.1110. A close above here would trigger another leg higher to the 200 day ma at 1.1218″.

“Longer term the critical resistance to overcome is the top of the one year channel at 1.1396 and the 200 week ma at 1.1353″.

“Dips lower should be contained by 1.0990 and 1.0941 for an immediate upside bias to be maintained”.