EUR / USD remains in its narrow converging range above 1.1186 / 68 price support since June 2020. An eventual break below 1.1168 should confirm a resumption of the central downtrend with a move towards the 1.1019 / 02 region.report economists at Credit Suisse.
A close above 1.1387 would be necessary to clear the way for a recovery at 1.1433.
“We maintain our central negative view and expect a break below 1.1265 for a drop back to 1.1237 / 27 initially, and then a retest of 1.1186 / 68.”
“An eventual break below 1.1186 / 68 would confirm the resumption of the central downtrend to the upper ‘head and shoulders’ target at 1.1075, and then to our central target 1.1019 / 02: the 78.6% retracement of the uptrend and 2020/2021 neckline to April / May 2020 base. With the long-term uptrend since 2000 just below, our bias remains to look for significant bottom here. “
“The short term resistance moves to 1.1325, with an ideal limit of 1.1356 / 60 to keep immediate risk low. “
“A close above 1.1387 is still required for a small base to complete rather than clearing the way for a deeper recovery to 1.1433, we would potentially expect there to be much tougher resistance at 1.1464.”