EUR/USD down 60 pips to 1.1263 today
Credit Suisse discusses EUR/USD technical outlook and highlights the importance of the 1.1122 level for directional bias.
"We continue to view the pullback as corrective, but with further weakness seen likely yet EURUSD extends its correction lower as expected with the market still capped below 1.1357/69 - the 38.2% retracement of the entire 2018/2020 bear trend and long-term downtrend from 2018 - and weakness has now extended to its 13-day exponential average at 1.1222/12. Although this is holding for now the immediate risk is seen lower and below 1.1212 would suggest the setback can extend further with support seen next at 1.1160/54, then more importantly 1.1122 - the 38.2% retracement of the entire rally from March. We would look for a better floor here," CS notes.
"Resistance is seen at 1.1292 initially, ahead of 1.1323 and then 1.1341. Above here is needed to suggest the correction is over and the rally can resume with resistance then seen at 1.1403 ahead of 1.1423/28, then the 1.1495 high for the year. Whilst this latter level should clearly be respected, a break would mark a medium-term base," CS adds.
