EUR/USD is seeing a key test of resistance at its March high and potential downtrend at 1.2113/18. A close above here can see next resistance at 1.2212, as economists at Credit Suisse note.
Support moves to 1.2046
“EUR/USD is now testing resistance at 1.2103/18 – the 61.8% retracement of the Q1 fall, March high and potential downtrend from the beginning of the year. Whilst we continue to look for this to try and cap, we have to recognize underlying momentum remains strong and a close above 1.2118 would mark an important break higher, opening the door to a move back to the 78.6% retracement of the Q1 fall at 1.2212, with scope for the 1.2243 February high. We would look for a fresh cap ahead of this latter high. A direct break though would clear the way for a retest of the high for the year at 1.2350.”
“Support moves to 1.2088 initially, then 1.2070, with the immediate upside bias seen whilst above 1.2046. Below can see a fall back to 1.1995/90 but with a break below here needed to mark a near-term top.”
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