I posted earlier on some technical analysis from Credit Suise (here: Technical analysis at times of major news impacts – an example – What do you think? ). They’ve also produced some longer-term technical analysis on EUR/USD.
They say:
- We continue to view the price action in EURUSD as a potential large bearish “wedge” pattern
- We may now also be witnessing the potential formation of a further “head & shoulders” top pattern, with the key test of support approaching fast
- Pivotal support remains seen starting at 1.3513 and stretching down to 1.3477 – the “neckline” to the top, uptrend from July 2012 and lows for the year from February and June
- Below here, which we look for, should finally confirm a major reversal has been established, turning the core trend bearish
- Our immediate target on a break would be set at 1.3374, ahead of 1.3248 – the 38.2% retracement of the entire 2012/2014 uptrend. Bigger picture though, if our bearish “wedge” view is correct, this would suggest we can eventually see the market down near 1.2755. Trade Idea: Sell strength to 1.3600, stop above 1.3660. Also add below 1.3475, for a decline to 1.3250.
