EUR/USD: Bouncing from the 1.1176 recent low - Commerzbank

Karen Jones, analyst at Commerzbank, explains that the EUR/USD pair is bouncing from the 1.1176 recent low after not been able to sustain breaks to new lows, and they are favouring near term recovery.

Key Quotes

“We suspect that it is trying to base but needs to do more work (we note the 13 count on the weekly chart). Once above the 200 day ma at 1.1461, the cross should target the 1.1570 January high, together with the 55 week ma at 1.1589. Initial resistance is the 20 day ma at 1.1283.”

“Below 1.1185/75 (61.8% retracement) lies the 1.1110, the May 2017 low and the 1.0814/78.6% retracement.”