Karen Jones, analyst at Commerzbank, points out that EUR/USD pair has broken below 1.1110/06, the April and May lows and in doing so has introduced scope to the 1.0974 2018-2019 support line, which in turn guards the 78.6% retracement at 1.0814/78.6% retracement.

“The market will stay directly offered below 1.1176/81 (mid June low and March low) and only a close above here would signal recovery to the 55 day ma at 1.1235 and the highs from last week at 1.1285. But while capped here it will remain on the defensive. The market will need to regain the 55 week ma at 1.1372 to generate upside interest.”