According to Axel Rudolph, Senior Analyst at Commerzbank, a close below 1.1725 should reinstate the downside pressure in the pair.
“EUR/USD’s upside correction nears the 1.1855 38.2% Fibonacci retracement. A close back below the June 13 low at 1.1725 should be enough to restore downside pressure to initially the 1.1616/17 May 2016 high. This guards the recent low at 1.1510 and the 200 week ma at 1.1417”.
“Above 1.1855 we look for a deeper retracement into the 1.1875/1.1990 band”.
“Below 1.1415 would introduce scope to the 61.8% retracement at 1.1186”.
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