Credit Suisse discusses EUR/USD technical outlook and maintains a core bearish bias.
"EURUSD remains below the 38.2% retracement of the May/Jul y fall and recent high at 1.0271 and last Friday has seen another bearish “reversal day” to reinforce the one seen at the be ginning of the week. This should further increase the likelihood that the corrective recovery is coming to an end," CS notes.
Support stays seen at 1.0122/14 initially, with a break below 1.0097 still seen needed to clear the way for a retest of our long-held parity/.990 0 objective and the current YTD low. An eventual break lower in due course can see the next meaningful support at .9609/.9592.
Resistance is seen at 1.0253/54, with 1.0294 ideally capping to keep the immediate risk lower. Above can see a deeper but still corrective recovery to test the point-of-breakdown from the bearish continuation pattern at 1.0341/66," CS adds.
