The EURUSD has extended its recovery and, with the momentum of the weekly MACD, which has also risen, Credit Suisse economists see room for a deeper recovery, which could return to 1.0350/90.

Weekly MACD momentum has turned to the upside

“With the weekly MACD pushing higher and the 55-day EMA resistance breaking and February downtrend, we see room for a deeper recovery to 1.0198/1.0201 and potentially the key pivot in 1.0350/90. With the 200-day moving average falling not far above, in 1.0460we would expect this to be a significant barrier.”

“Below 0.9704 remains the need to reaffirm the underlying downtrend for a drop to support at 0.9592/37with a support then seen below in 0.9331/03.”