Axel Rudolph, analyst at Commerzbank, suggests that EUR/USD once more flirts with the 200 day moving average at 1.1152, having last week briefly shot up to the 1.1200 mark.

“Further range trading around the 200 day moving average is on the cards today. Above 1.1200 lie the 55 week moving average at 1.1208 and the August peak at 1.1249. Further up meanders the 200 week moving average at 1.1358 which remains in focus for the weeks to come. It represents a critical break point on the topside from a medium term perspective. Support below the 1.1116 December 4 high and the 1.1097 November 21 high is seen at the December 6 low at 1.1040. Failure at 1.0981 would target the 78.6% Fibonacci retracement at 1.0943. This is seen as the last defence for the 1.0879 October low. If revisited, we would look for signs of reversal from there.”