Karen Jones, analyst at Commerzbank, explains that the EUR/USD pair is correcting higher near term following the recent sell off to the 61.8% Fibonacci retracement of the 2017-18 advance at 1.1186, which has held the initial test.

“The bounce higher has been tepid so far and there is now a considerable amount of resistance above the market extending up to the 200 day MA at 1.1491. Rallies will find initial resistance at 1.1315 the 20 day MA, which guards the 1.1420 end of February high and the 1.1435 downtrend. Below 1.1185/75 lies the 1.1110, the May 2017 low and the 1.0814/78.6% retracement.”