Below 1.1991/92, the EUR/USD pair can keep the immediate risk lower for a retest of the rising 200-day average at 1.1850 and eventually 1.1695, the Credit Suisse analyst team reports.
See: EUR/USD set to fall to 1.16 in 12 months as the dollar dip is transitory – Danske Bank
Key quotes
“We maintain our view that the recent rebound is temporary only. Below support at 1.1882 should add weight to this view and open the door to a retest of the 200-day average at 1.1850.”
“Beneath the 200-day average at 1.1850 and then the 1.1835 recent low, ideally on a closing basis should add weight to our broader roadmap for a fall to the 38.2% retracement of the entire 2020/2021 uptrend at 1.1695. Whilst our bias remains to look for a more important floor here, a break would warn of a more significant downturn and a test of the 1.1612/04 lows.”
“Near-term resistance moves to 1.1954. Above 1.1992 would suggest a more important low may be in place above the 200-day average for a deeper recovery to 1.2032/39 initially, the 38.2% retracement of the entire fall from early January, then what should be tougher resistance at the 55-day average, currently at 1.2085.”
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