Karen Jones, analyst at Commerzbank, suggests that for the EUR/USD pair recovery from here is currently being seen and this preserves the range and places the 1.1522 200 day ma back in the picture, after it sold off towards and recovered just ahead of the 1.1216 November low last week.

Key Quotes

“For now it is on the defensive and will have to regain 1.1342 to alleviate immediate downside pressure. Below 1.1216 will target the 61.8% Fibonacci retracement of the 2017-18 advance at 1.1186.”

“Above the 200 day ma will re-target the 1.1623 mid-October high and slightly longer term we look for gains to 1.1702, the 55 week ma.”

“Long term trend: A rise above the recent high at 1.1623 would confirm a trend reversal and put the 55 week moving average at 1.1723 back on the cards.”