In view of Karen Jones, analyst at Commerzbank, EUR/USD pair has recently failed at the 55 day moving average at 1.1241 and remains on the defensive.

“While we remain unable to rule out a test of the 1.1110 April low, we look for this to hold. We note the 13 count on the 60 minute chart but suspect that we need to regain 1.1200 in order to alleviate immediate downside pressure. Be advised that as long as 1.1110 holds, though, the pattern being traced out is a potential large bullish reversal pattern. Overhead lie the 55- and 100-day moving averages at 1.1241 and 1.1304 as well as the September-to-May resistance line at 1.1321. Further up meanders the 200 day moving average at 1.1391. Support at 1.1110 is regarded as the break down point to the 2018-2019 support line at 1.1096 and the 1.0814 78.6% Fibonacci retracement.”