The EUR/USD remains capped, as expected, below the 200-day SMA, currently at 1.0409. Credit Suisse analysts see the possibility of a deeper pullback to the 38.2% recovery since September at 1.0120.
Resistance at 1.0409 expected to cap the pair for now
“EUR/USD remains constrained, as expected, by key resistance at its longer-term falling 200 DMA, which is currently at 1.0409, and with a lower top already in place, we continue to see scope for a deeper pullback from here.”
“Support at the rising 13-DMA at 1.0211, a close below which would clear the way for a test of the Oct/Nov reaction highs at 1.0197/95. We continue to look for a bottom here. If the weakness continues directly, further weakness would be raised, with the next support being the 38.2% retracement of the September/November rally at 1.0120.”
“Resistance is seen at 1.0334 initially, with a close above the 200 DMA at 1.0409 needed to clear the way for further strength back to the 1.0481 high and eventually the 38.2% retracement of the entire drop in 2021-2022 at 1.0612/15.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
