EUR/USD is seen starting the week strongly and remains on course to challenge pivotal resistance from the 1.1495 March high for the year. Whilst this is likely to prove a formidable barrier, analysts at Credit Suisse continue to hold a bias for an eventual break higher to establish a major base and medium-term trend higher.
Key quotes
“We maintain our bullish bias for a challenge on pivotal resistance from the high for the year at 1.1495. Whilst we expect this latter level to remain a formidable barrier, a break higher at any stage would be seen completing a significant medium-term base to mark a more sustained trend higher with resistance next at 1.1571, then the 50% retracement of the fall from 2018 at 1.1596, which we would expect to cap at first for a pullback.”
“Big picture, we suspect we could eventually see the market test its early 2018 point-of-breakdown at 1.2155.”
“Support moves to 1.1412 initially, then 1.1378/70, which we look to try and now hold. A break can see a deeper setback to the uptrend and price support at 1.1337/25, with weakness now not ideally extending back below here.”
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