Karen Jones, analyst at Commerzbank, points out that the EUR/USD pair has eroded the 55 day moving average and needs to overcome the 55 day moving average, the recent high at 1.1264 and the 2018-2019 downtrend at 1.1287 on a closing basis in order to alleviate downside pressure and reassert upside interest which is favoured now.
Key Quotes
“Be advised that as long as the recent lows at 1.1110/06 hold on a closing basis the pattern being traced out is a potential large bullish reversal pattern.”
“Support at 1.1110/06 is regarded as the break down point to the 2018-2019 support line at 1.1027 and the 1.0814 78.6% Fibonacci retracement.”
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