Credit Suisse FX Technical Strategy Research notes that EUR/USD has found an initial cap at the low of 2010 at 1.1876 and is currently correcting gains.
"We allow for this phase of consolidation to extend, however, we view it as corrective and once it has run its course look for an extension above 1.1876 to target the recent high at 1.1911.
Extension above here would reinstate the core bull trend for the 2012 low at 1.2000/42 next, then the 50% retracement of the 2014/17 fall at 1.2167, with scope to test the "neckline" to the multi-year top at 1.2244," CS argues.
