In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, spot could try to stabilize in the 110.27/109.75 band for the time being.
“We have reached the critical band of support offered by the 110.27 250 day ma and the 55 week ma at 109.75, and we are looking for some signs of stability in this zone. Nearby resistance is the 55 day ma at 112.25 and this guards the 114.50 recent highs. Above 114.50 will see an extension to the 115.51/62, this years highs. Initial minor resistance lies circa 112.50/75”.
“Key nearby support is the 250 day ma at 110.19 and 55 week ma at 109.75, below here, there is scope for slippage to the 108.13 April low”.