EUR/USD: a bullish euro recovery seems to be in the works (Commerzbank)

Karen Jones, an analyst at Commerzbank, suggests that a bullish EUR/USD recovery from current levels is now expected, preserving the range and restoring the 200-day moving average to 1.1522 after the fall of the euro and the rebound last week, ahead of 1.11216 the November low.

"For now, the EUR/USD is on the defensive and will have to reach 1.1342 again to ease the immediate downward pressure. Below 1.1216, the 61.8% Fibonacci retracement of the 2017-18 rise will be 1.1186.

Beyond the 200-day moving average, we will target a rise to 1.1623, the highest level of mid-October, and in the slightly longer-term, we expect gains to reach 1.172, the 55-week moving average."

The EUR/USD met with resistance on Monday, but a new bullish attempt could break through the resistance level of 1.1342 that Commerzbank is monitoring.