Karen Jones, Head of FICC Technical Analysis at Commerzbank, expects the pair could attempt a visit to the 1.0352/40 region on a break below the 1.0560 area.
“EUR/USD continues has eroded the 55 day ma and sits on the base of the cloud at 1.0563. We suspect will need to go below here in order to re-target recent lows at 1.0352/40”.
“The market will remain directly offered below its 20 day ma at 1.0699. Above here lies 1.0820/26, which represents the 50% retracement and the top of the cloud”.