EUR/USD: the euro is becoming stable on the forex (Commerzbank)

According to Karen Jones, Commerzbank's chief analyst, the EUR/USD pair is stabilising towards the 55 and 100-day moving averages at 1.1308/48, and she considers it to be in a consolidation phase.

"The recent low of 1.1776 is considered an intermediate low and we suspect that the market is trying to form a base and move up, but it needs to do more work to achieve this (we note that the 13 count on the weekly chart reinforces the prospect of a potential base).

The initial resistance is the limit of the 100-day moving average at 1.1348 and the resistance line at 1.1391, ahead of the 200-day moving average at 1.1441. The pair is expected to aim for the January high of 1.1570, as well as the 55-week moving average of 1.1551. We have contradictory intraday counts of Elliott waves.

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