EUR/USD: the euro decline is lacking in momentum (Commerzbank)

Karen Jones, an analyst at Commerzbank, suggests that the EUR/USD pair is trying to rebound from the recent low of 1.1176 as the market has not recently experienced any breaks to new lows, but there is still a risk of falling to 1.1110, the late May 2017 low (not our preferred scenario).

"The daily RSI shows divergence, reflecting a loss of downward momentum. We suspect that the pair is trying to form a base and bounce back, but it needs to do even more work for this (we note the 13 figures on the weekly chart).

Once above the 200-day moving average of 1.1463, the pair should target the January peak of 1.1570, as well as the 55-week moving average of 1.1589.

Below 1.1185/75 (61.8% retracement) are 1.1110, the May 2017 low and the 78.6% retracement at 1.0814."