Karen Jones, analyst at Commerzbank, explains that the EUR/USD pair has rallied to and so far stalled at the 100 day ma at 1.1279.

“Directly overhead lies the 2018-2019 downtrend at 1.1287/90 and we would allow for this to hold the initial test. This needs to be overcome on a closing basis in order to alleviate downside pressure and reassert upside interest. This is now favoured. Be advised that as long as the recent lows at 1.1110/06 hold on a closing basis the pattern being traced out is a potential large bullish reversal pattern. Support at 1.1110/06 is regarded as the break down point to the 2018-2019 support line at 1.1027 and the 1.0814 78.6% Fibonacci retracement.”