Karen Jones, analyst at Commerzbank, suggests that EUR/USD is side lined, holding just above the 1.0927/26 recent lows.

Key Quotes

“The topside remains capped by the April and May lows as well as the three month resistance line at 1.1073/1.1110. Only a daily chart close above the August 26 high at 1.1164 would confirm a bottoming formation and put the 200 day ma at 1.1247 back on the cards.”

“For now the market is on the defensive. Support below the recent lows at 1.0927/26 comes in at the June 2016 low and the March 2017 high at 1.0912/07.”

“Failure at 1.0927/26 would put the January 2017 low at 1.0829 and the 78.6% Fibonacci retracement of the 2017- 2018 advance at 1.0814 on the map.”