EUR/USD was within striking distance of the 1.20 mark last week, but has since faded. What is the technical outlook for the pair in the short term?
Here is their view, courtesy of eFXdata:
Credit Suisse discusses EUR/USD technical outlook and flags a scope for a short-term top towards 1.1697 ahead of 1.1476.
“EURUSD strength quickly faded again and with a bearish “outside day” in place from the end of last week the prospect we are looking at the construction of a near -term topping process remains seen high, especially given the poor existing momentum picture.
Resistance at 1.1850 capping can keep the immediate risk lower with the “neckline” to the top seen at 1.1727 today, with key price support then seen at 1.1710 and then more importantly at the 1.1697 August low. Only below this latter level though would see a top confirmed to mark a more important turn lower with support then seen next at 1.1661/52 – the 23.6% retracement of the entire rally from March and 38.2% retracement of the rally from late June – which we would expect to hold at first. A break in due course though can see the uptrend from May next at 1.1630, with the “measured top objective” though would be seen set lower at 1.1476,” CS notes.
“Above 1.1850 can see a recovery back to 1.1883/85, but with a break above here needed to neutralise Friday’s bearish session, with resistance then seen next at 1.1949/53,” CS adds.
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