EUR/USD: Commerzbank still expects the euro to recover

Commerzbank points out that the EUR/USD continues to remain within its range, consolidating above the 100-day moving average at 1.1436.

"We expect a rise of the euro towards its 200-day moving average at 1.1553. We could see minor declines that are expected to hold around 1.1390, and the EUR/USD remains supported by the 2016-2019 uptrend line at 1.1307.

We have an additional support zone offered by 1.1267/70, the of November and December lows. Provided that the market holds in this zone, we are in favour of a resumption of the threshold at 1,1556 (the 200-day moving average) and the mid-October high at 1,1623, and in the slightly longer term we are aiming for 1,1745, 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 hike at 1.1186. Please note that we continue to consider the recent low of 1.1216 as an intermediate low for the market."