Karen Jones, analyst at Commerzbank, points out that EUR/USD pair is seeing a strong rebound from the November low at 1.1267 and is currently well placed to challenge and break above the 2018 downtrend at 1.1503.
Key Quotes
“Upside risks are growing and a close above here would trigger a recovery to the 1.1623 October high and the 1.1695 200 day ma. Dips lower should find initial support at the 20 day ma at 1.1359 ahead of the 1.1267 end of November low.”
“Failure at 1.1267 will trigger losses to the 1.1216 recent low and the 61.8% Fibonacci retracement of the 2017-18 advance at 1.1186. Please note that we continue to regard the 1.1216 recent low as an interim low for the market.”
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