EUR/USD: Commerzbank awaits the formation of a base

According to Karen Jones, analyst at Commerzbank, the EUR/USD has been subject to slight downward pressure within its trading range, but it continues to watch for the formation of a potential base with initial resistance to the 6-month resistance line located at 1,1457.

"Just above here is the 200-day moving average at 1.1502. The pair has not yet cleared the 100-day moving average at 1.1385, but we expect it to remain supported by the November low at 1.1216. We continue to favour a bullish recovery. Above the 200-day moving average, we will aim for gains to be reached at 1.1623, the mid-October high, and in the slightly longer tems, reached at 1.1667, the 55-week moving average.

A rally from the recent peak of 1.1623 would confirm an upward reversal and bring the 55-week moving average back to 1.1667."