Karen Jones, analyst at Commerzbank, points out that the EUR/USD pair did not close below the 1.0989 mid-November low, and this was not a valid break lower.
“The market has bounced strongly higher and attention has reverted to last week’s high at 1.1097 this guards the 1.1180 October high and the 1.1249 channel resistance and eventually the 1.1359 200 week ma. This remains the critical break point on the topside from a medium term perspective.”
“Intraday dips are indicated to hold over 1.1050.”
“Failure at 1.0980 targets the 1.0943 78.6% retracement. This is seen as the last defence for the 1.0879 October low and the 1.0814 Fibo retracement, and if seen, we will look for signs of reversal from here.”
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