Analysts at Credit Suisse look for a break of the December 2019 and current year highs at 0.7024/32 after a consolidation following a fairly aggressive reversal from this point.
Key quotes
“With daily RSI momentum still in heavily overbought territory, we still expect further near-term consolidation, before an eventual resumption of the uptrend.”
“An eventual sustained closing break above 0.7032 and then 0.7041 would reinforce the view of a broader change in trend to the upside, with resistance then seen initially at the July 2019 high and 78.6% retracement of the April 2019/March 2020 downfall at .7082/92, before the 61.8% retracement of the fall from 2018 at 0.7133/40.”
“Support moves initially to 0.6883/57, which now ideally holds to keep the upside bias intact. Removal of here would see a correction (rather than just consolidation) and a move back to the 200-day average and 2.6% retracement of the March/June surge at 0.6664, where we expect to see a concerted effort to hold.”
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