EUR/USD: the euro breaks through its resistance level and could resume an upward trajectory (Commerzbank)

Commerzbank notes that the EUR/USD has eroded the 100-day moving average at 1.1443 and that this is a breaking point that can propel it to its 200-day moving average (1.1563).

"We may see a slight decline to 1.1450/30 before a bullish rally and additional gains. The EUR/USD remains supported by the 2016-2019 uptrend line at 1.1289. We have additional support at 1.1267/70 (the November and December lows). Provided that the market holds, we are in favour of a resumption of the 1,1563 threshold of the 200-day moving average and the mid-October high at 1,1623. And in the slightly longer term, we are targeting 1,1759, the 55-week moving average.

A break below 1.1267 would cause losses to 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 market."