EUR / USD maintains the 38.2% retracement of the November / January rally and the 55-day average at 1.2065 / 54, Credit Suisse analysts say. They expect this to hold for now and move resistance at 1.2134.
Key statements:
“EUR / USD has sold off abruptly after confirming a small ‘shoulder-head-shoulder’ top below price support at 1.2132 / 22 with weakness already extending to our first downside target at 1.2065 / 54, the December low, the 38.2% retracement of the November / January rally and the 55-day average. We continue to look for an attempt for it to find a bottom here for now and for a recovery to emerge with resistance initially seen at 1.2134, then the 13-day average and resistance at 1.2167 / 80, which we are looking to face up against. “
“Above 1.2167 / 80, EUR / USD may see a deeper rally towards the ‘neckline’ to the top at 1.2223 / 31, but with this it needs to be broken to negate the top and suggest that the corrective pullback is coming to an end to return to the highs of 1.2350 / 55 “.
“Below 1.2054 (close), the pair may see support below at the September high at 1.2011 ahead of the 23.6% retracement of the entire 2020/2021 uptrend at 1.1945, with the ‘upper target measured’ at 1.1924 / 14. “
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