EUR/USD has surrender further gains on Monday in response to the pick up in the risk-on trade and dovish comments by ECB’s M.Draghi. The decline, however, seems to have found decent support in the 1.1120 area. Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “continues to ease back from the top of its short term up channel, this is located at 1.1385 today. Currently the intraday Elliott wave counts are contradictory, however we suspect the recent high was the end of an ‘a-b-c correction and should we fall back below the 200 day ma at 1.1057 our attention will drop to the uptrend at 1.0893 today and beyond”. In addition, the research team at UOB Group suggested “The bullish EUR phase that started on the 4th of February has likely made a short-term top at 1.1375 (1.1400 profit-taking level not met). The current down-move from the high is likely part of a corrective pull-back which could extend lower to 1.1060. The major support is nearer to 1.0990 and a move below this level is not expected for now. Overall, this pair is expected to remain under pressure in the coming days unless it can reclaim the 1.1375 peak”. For more information, read our latest forex news.