EUR/USD: the euro should rebound to the upside on the forex (Commerzbank)

Karen Jones, an analyst at Commerzbank, suggested that they were expecting a rebound of the EUR/USD after the EUR held steady last week after the recent low at 1.1176.

"The market has not recently seen a break at new lows and we are in favour of a short-term bullish recovery.

We suspect that the pair is trying to form a base and bounce upwards but needs to do more work before that (we note the 13 figures on the weekly chart). Once above the 200-day moving average bar at 1.1457, the pair should target the January peak of 1.1570, as well as the 55-week moving average at 1.1568.

Initial resistance is the 20-day moving average at 1.1280.

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