Karen Jones, analyst at Commerzbank, explains that the EUR/USD pair has bounced from the November low at 1.1267 and the rallies are likely to find initial resistance at the 55 day ma at 1.1402 and last week’s high at 1.1442 and this guards the 2018 downtrend at 1.1503.
Key Quotes
“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. Failure there would put the late May and June 2017 lows at 1.1119/10 on the cards.”
“A close above the November high at 1.1500 and the 1.1503 downtrend will be needed to negate downside pressure.”
“Long term trend (1-3 months): A rise above the recent high at 1.1625 would confirm a trend reversal and put the 55 week moving average at 1.1836 back on the cards.”
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