According to Karen Jones, analyst at Commerzbank, EUR/USD is poised to challenge the 5 month downtrend at 1.1115 as the attention is on the topside.

“The downtrend guards the 1.1180 October high and the 1.1249 channel resistance and eventually the 1.1359 200 week ma. This latter level remains the critical break point on the topside from a medium term perspective. Intraday dips should hold over 1.1050/45. This guards the recent low at 1.0981. Failure at 1.0980 targets the 1.0943 78.6% retracement. This is seen as the last defence for the 1.0879 October low and the 1.0814 Fibo retracement, and if seen, we will look for signs of reversal from here.”