The EUR / USD is expected to undergo a longer consolidation / correction phase, but this is seen as temporary before an eventual break above 1.2355 for a move to 1.2518 / 98, Credit Suisse analysts estimate.
“EUR / USD has recovered from the short-term price support at 1.2129 / 22 as expected, but with the dollar itself as important support, our bias remains for further consolidation / corrective weakness before the central uptrend finally resumes“.
“With resistance at 1.2231 as the limit, the cross can still hold immediate downside risk with support seen initially at 1.2180, then 1.2132 / 22. Below that can be seen a deeper pullback to 1.2065 / 59, the December low and the 38.2% pullback from 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 the September high of 1.2029 / 11 ”.
“Above 1.2231 you can see a move back to 1.2285, but with a break here needed to clear the way for a retest at 1.2345 / 55. Further, the central uptrend can be reaffirmed with resistance seen at 1.2414, then 1.2477 and then our central target at 1.2518 / 98 ”.