Karen Jones, analyst at Commerzbank, suggests that the EUR/USD pair has gone into consolidation mode after it steadied yesterday, following its rejection last week from the 200 day ma at 1.1475.
“We suspect that it is trying to base but needs to do more work – once above the 200 day ma this will target the 1.1570 January high together with the 55 week ma at 1.1610. We view 1.1176 as an interim low in place. Initial support lies at 1.1216 November low ahead of 1.1176 low.”
“Below 1.1185/75 (61.8% retracement) lies the 1.1110, the May 2017 low and the 1.0814/78.6% retracement.”