EUR/USD: bullish risks are increasing for the pair (Commerzbank)

Commerzbank notes that the EUR/USD has rebounded sharply since the November lows at 1.1267, and is now well positioned to test and break above the 2018 downtrend line towards 1.1503.

"The upside risks are increasing and a break above the trend line would trigger a recovery towards the October peak at 1.1623 and the 200-day moving average at 1.1695.

Any declines should find a first support level near the 20-day moving average at 1.1359, before the end of November low at 1.1267.

A break of 1.1267 would result in losses reaching the recent low at 1.1216, and the 61.8% Fibonacci retracement  of the 2017-18 rally at 1.1186. Please note that we continue to consider the recent low of 1.1216 as an intermediate low for the EUR/USD."