Analysts at Commerzbank point out that EUR/USD has at last taken out the four month downtrend and given that the market has recently turned from the base of the weekly channel at 1.0892, they view the market as a base.

“We look for recovery to initially the mid September high at 1.1110. A close above here would trigger another leg higher to the 200 day ma at 1.1220. Longer term the critical resistance to overcome it the top of the one year channel at 1.1303 and the 200 week ma at 1.1354. Below 1.0879 we have the January 2017 low at 1.0829 and the 78.6% Fibonacci retracement of the 2017-2018 advance at 1.0814.”