Axel Rudolph, analyst at Commerzbank, points out that EUR/USD pair’s bounce off the April low at 1.1110 nears the 55 day moving average at 1.1235 and it needs to overcome the 55 day moving average in order to alleviate downside pressure.

“Be advised that as long as the recent lows at 1.1110/06 hold the pattern being traced out is a potential large bullish reversal pattern. Overhead lie the 55- and 100-day moving averages at 1.1235 and 1.1295 as well as the September-to-May resistance line at 1.1307. Further up meanders the 200 day moving average at 1.1385. Support at 1.1110/06 is regarded as the break down point to the 2018-2019 support line at 1.1090 and the 1.0814 78.6% Fibonacci retracement.”