Karen Jones, analyst at Commerzbank, notes that EUR/USD pair has sold off to, tested and reversed from 1.1110/06 the April and May lows.

“We would consider a close above 1.1176/81 (mid-June low and March low) enough of a trigger to signal recovery to the 55 day ma lies 1.1243 and highs last week at 1.1285.Yesterdays spike lower was exhaustive and despite an impressive rally it was not enough to confirm reversal – there is more work to do. Below 1.1100 will introduce scope to the 1.0980 2018-2019 support line, which in turn guards the 78.6% retracement at 1.0814/78.6% retracement. Initial resistance lies at 1.1285, the 11th July high and this guards the more important 55 week ma at 1.1382. The market will need to regain the 55 week ma at 1.1382 to generate upside interest.”