Heightened risk aversion has given an extra dose of oxygen to the single currency today, pushing EUR/USD back above the 1.1200 handle.
“EUR/USD looks to be shaping up to challenge the 1.1260/96 23.6% retracement of the move down from the 2014 peak and the 61.8% retracement of the move down from the August 2014 peak”, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.
In addition, Strategist at Rabobank Piotr Matys commented, “the bias (at least the short-term) has started shifting from “sell rallies” to “buy dips”. This shift culminated in a bullish breakout from a triangle pattern and EUR/USD rallied to 1.1246 high last week. While January US non-farm payrolls triggered a modest correction, a sustained trade above the key support area formed around the 200-dma at 1.1054 would favour further gains in EUR/USD in the shortterm”.
(Market News Provided by FXstreet)