Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, noted the pair faces a tough hurdle in the vicinity of 1.1090.

Key Quotes

“EUR/USD has started to recover just ahead of the 1.0981 29th November low. Just below here lies the 1.0956/78.6% retracement and we look for this to hold. Rallies will need to regain the previous uptrend, which is now likely to act as resistance, which is located at 1.1088.”

“A move above here will refocus attention on the tough band of resistance overhead at 1.1175-1.1240 – namely the 55 week ma, the 2019-2020 down channel and the recent high. This guards the 200 week ma at 1.1356, which continues to represent a critical break point medium term.”