Chances of a deeper corrective pullback to test 1.2065 / 59 – Credit Suisse

The EUR / USD is trading unchanged Tuesday around 1.2150. Credit Suisse economists continue to look for a pullback with support seen at 1.2129 / 22, then 1.2065 / 59; while on the upside, they locate resistance at 1.2385.

Key statements:

“Our bias looks towards a breakout in due time and a deeper pullback to 1.2065 / 59 – the December low and 38.2% retracement of the November / January rally, where we then look for an attempt to find a bottom. Failure to do so may expose the 55-day average and September high at 1.2020 / 11, but this is expected to be a better floor. “

“Resistance is initially seen at 1.2174, and immediate downside risk below 1.2231. A move back to 1.2285 can be seen above, but with a break above here needed to ease the downside bias for a retest at 1.2345 / 55. Beyond here the central uptrend can be reaffirmed with resistance seen at 1.2414 then 1.2477 and then our central target at 1.2518 / 98 ”.

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