Karen Jones, analyst at Commerzbank, suggests that EUR/USD is offered near term and attention is on the 1.0989 mid-November low and whilst it holds, last week’s high at 1.1097 may be revisited, a rise above which would have the 1.1180 October high in its sights.

“Above 1.1180 will target the 1.1255 one year channel. However the support is looking increasingly exposed and failure here will trigger another leg lower to the 1.0943 78.6% retracement. It is possible that we will see one more final leg down to the base of the channel at 1.0844 and the 1.0814 Fibo retracement before a sustained recovery is seen (but this is not our favoured view).”