EUR/USD: the euro is correcting to the upside in the short-term (Commerzbank)

Karen Jones, an analyst at Commerzbank, says that the EUR/USD is bullish in the near term, following the massive selloff at the 61.8% Fibonacci retracement of the 2017-18 rally at 1.1186, which held the initial test.

"The bullish rally began to erode the 20-day moving average at 1.1388, which somewhat neutralised the chart, although the number of intraday Elliott waves remains negative.

There is now considerable resistance above the market that extends to the 200-day moving average at 1.1489. Rallies will find initial resistance at 1.1367/71 the 55 and 100-day moving averages, maintaining the end-of-February high of 1.1420 and the downtrend line at 1.1488. Below 1.1185/75 are the 1.1110 level (the May 2017 low) and the 78.6% Fibo retracement at 1.0814."