EUR / USD is on track for a test to medium-term support at 1.1703 / 1.1695, according to analysts at Credit Suisse. They warn that underneath, it could form a shoulder-head-shoulder figure, taking the central trend to bearish, enabling a drop to 1.1612 / 04, before the March 2020 high at 1.1495.
Key statements:
“We remain bearish for a test of medium-term support at 1.1703 / 1.1695. Although a bounce to 1.1703 / 1.1695 should be allowed, our broader bias is for an eventual clear and sustained breakout in due course. “
“A break below 1.1703 / 1.1695 would mark the completion of a major bearish ‘shoulder head shoulder’ to mark a significant downward trend reversal. We would then see support initially at 1.1662 before September lows and November 2020 at 1.1612 / 04, which we would expect to hold at the beginning. “
“Overall, we would look for the weakness to extend to the key high of March 2020 at 1.1495.”
“Resistance moves to 1.1770 initially, above which a minor base can be seen for a rally back to the 13-day exponential average at 1.1805 / 10, where new sellers are expected. “
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