Karen Jones, analyst at Commerzbank, explains that the EUR/USD pair has broken down from the base of the range at 1.1216 as it has sold off to the 61.8% Fibonacci retracement of the 2017-18 advance at 1.1186 and while this may hold the initial test, there is now a considerable amount of resistance above the market extending up to the 200 day MA at 1.1498.

“Below 1.1185 lies the 1.1110, the May 2017 low and the 1.0814/78.6% retracement. Rallies will find initial resistance at 1.1315 the 20 day MA, which guards the 1.1420 end of February high and the 1.1441 downtrend.” Jones said.