EUR/USD maintains its break above 1.1990/97 and large bullish “outside day” and analysts at Credit Suisse look for further strength to 1.2103/13, with scope for the potential downtrend from early January, today seen at 1.2130.
Support moves to 1.1995/90
“EUR/USD maintains its break above key resistance from its 55-day average and mid-March highs at 1.1992/97 completing a large bullish ‘outside day’ in the process and this suggests a more important low has indeed been established near the 1.1695 key retracement support/target (38.2% of the 2020/2021 uptrend).” “We look for further strength to resistance at the March high and 61.8% retracement of the 2021 fall at 1.2103/13, with the potential downtrend from the 2021 high just above at 1.2127/30. We would look for this latter area to then ideally cap for a pullback into what we look to be a broader sideways range.”
“Above 1.2130 would open the door to a move back to the 1.2243 February high.”
“Support moves to 1.2033 initially, then 1.2015, with 1.1995/90 ideally holding to keep the immediate risk higher. Below can see a fall back to 1.1946/42, but only back below here would warn of a ‘false’ break higher and instead mark a near-term top.”