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The EUR/USD pair has surged above resistance at 1.1992/97 this morning, with a close above here suggesting that an important low is in place, according to the Credit Suisse analyst team.

EUR/USD is breaking above key resistance at 1.1992/97, which potentially marks an important breakout

“A close above 1.1992/97 would suggest we have seen a more important low established near the 1.1695 key retracement support/target (38.2% of the 2020/2021 uptrend). If seen, this should then clear the way for further strength to resistance at 1.2027 next and then more importantly 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 1.2127/33.”  

“A reversal back below 1.1992 into today’s close followed by a clear break of support at 1.1950/46 would quickly turn the risks lower again for a fall back to 1.1928/23, then 1.1883. A break below 1.1871/60 though remains needed to see a small top complete to confirm we have seen a more important topside failure, for a fall back to 1.1795 initially and eventually a retest of 1.1703/1.1695.”