EUR/USD is pushing above a key cluster of resistances at 1.1770/84 – the 55-day average and downtrend from early September – to suggest the corrective setback is over and the broader uptrend resumed, as per Credit Suisse.
See – EUR/USD: One more possibility around year-end for testing of 1.20 – Danske Bank
Key quotes
“A sharp weakening of the USD and broader ‘risk-on’ has seen EUR/USD move strongly higher for a breakthrough key resistances at 1.1770/84 – the 55-day average, downtrend from the early September peak and 38.2% retracement of the September fall – and this suggests the top has been negated to suggest the correction is already over and broader uptrend resumed. Indeed, when we see top patterns negated without their objectives being realized, this can often lead to a powerful move higher in the underlying trend direction, i.e. higher.”
“We turn bullish again with resistance seen next at 1.1827, then 1.1873/83, with 1.1918 needing to be cleared for a move back to the 1.2011 high and eventually our 1.2145/55 long-held objective – the ‘neckline’ to the early 2018 top, from which we will look for a fresh consolidation phase.”
“Support is seen at 1.1747 initially, with 1.1720 now ideally holding to keep the immediate risk higher, although only back below 1.1695/85 would mark a false break higher.”
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