Karen Jones, analyst at Commerzbank, points out that EUR/USD pair has sold off yesterday and attention has reverted to the March and mid-June lows at 1.1181/76, while these hold the downside, an upside bias will prevail.
“We should then see recovery towards the 200 day moving average and early June high at 1.1320/48. This guards the more important 1.1394/1.1412 55 week ma and recent high. Above the 1.1412 June high we look for resumption of the up move and a test of the 1.1570 2019 high. Slightly longer term we target 1.1815/54, the highs from June and September 2018.”
“We regard the April and May lows at 1.1110/06 as a turning point and continue to view the market as based longer term and target 1.1990 (measurement higher from the wedge).”