Axel Rudolph, analyst at Commerzbank, points out that EUR/USD has seen a strong bounce from its current September low at 1.0926.
“Nearby resistance above last week’s high at 1.1084 can be found at the April and May lows at 1.1110/1.1106 as well as along the three month resistance line at 1.1122. Only a daily chart close above the August 26 high at 1.1164 would confirm a bottoming formation and put the 200 day ma at 1.1265 back on the cards.”
“Ideally we would like the 55 week ma at 1.1318 to be exceeded as well. Support below the minor psychological 1.1000 mark comes in at the current September low at 1.0926. Below the 1.0926 low lie the June 2016 low and the March 2017 high at 1.0912/07. Further down sit the January 2017 low at 1.0829 and the 78.6% Fibonacci retracement of the 2017-2018 advance at 1.0814.”
“The cross will need to regain the 55 week ma and downtrend channel resistance line at 1.1318/40 to generate upside interest.”
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