EUR/USD: the euro is pursuing its consolidation with a bullish bias on the forex (Commerzbank)

According to Commerzbank analysts, the EUR/USD remains stable at the respective 55 and 100-day moving averages at 1.1305/47, and they believe that the pair is consolidating.

"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 its needs to do more work to do 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 1.1347 and the resistance line at 1.1388, ahead of the 200-day moving average at 1.1440. The pair is expected to aim for the January high at 1.1570, as well as the 55-week moving average of 1.1551. However, we have contradictory intraday Elliott wave counts.

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