EUR/USD gathers upside traction and advances to 1.1230. The pair may find short-term support at the 1.1240/1.1180 zone, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, reports.

A move above 1.1604 is needed to alleviate downside pressure

“EUR/USD continues to dig into the October and December 2019 highs at 1.1240/1.1180 which are still expected to offer support, especially since the new low has not been confirmed by the daily RSI and two Tom DeMark 13 counts.” 

“Any bounces will find tough resistance at the 1.1604 five-month downtrend and while capped here, the overall bias remains negative.”

“Initial resistance is 1.1374, the November 18 high, followed by the 20-day ma at 1.1413.”

“Below 1.1160 (TD support) would target 1.1000, the 78.6% retracement of the move seen in 2020.”