Axel Rudolph, analysts at Commerzbank, explains that the EUR/USD cross has reached the 55 day moving average at 1.1251 which capped and they continue to favour the topside even though short-term further consolidation below the current May high at 1.1264 is seen.

“Failure at the 1.1177 March low on a daily chart closing basis would put the 1.1110 April low back on the map. Be advised that the pattern being traced out is a potential large bullish reversal pattern. We have positive divergence on the weekly RSI and a Tom DeMark 13 count on the weekly chart. Overhead lie the 55- and 100-day moving averages at 1.1251 and 1.1313 as well as the September-to-May resistance line at 1.1333. Further up meanders the 200 day moving average at 1.1395. Support at 1.1110 is regarded as the break down point to the 2018-2019 support line at 1.1099 and the 1.0814 78.6% Fibonacci retracement.”