EUR/USD: An Interim Top Or A Bull Flag In The Making?: The Key Level To Watch – Credit Suisse

EUR/USD: An Interim Top Or A Bull Flag In The Making?: The Key Level To Watch – Credit Suisse

EUR/USD has slipped from the highs, but does it still have the momentum to rise?

Here is their view, courtesy of eFXnews:

Credit Suisse discusses EUR/USD technical outlook and notes that the  bearish short-term price action has seen the pair prodding  below 1.2343/23,  the 23.6% retracement of the December to January rally, key low and price high.

“Only  a clear break through would establish a top, with support then seen at 1.2224/15,  the 38.2% retracement and 1.2166 thereafter.

However,  back above  1.2343/23,  according to CS, could suggest that  the market  could just as easily be forming a ‘bull flag’, with the test below 1.2343/23 classically in line with the textbook theory of such patterns.

“Resistance moves to 1.2476 initially. Above here is needed to ease topping fears for strength back to retest the major 1.2518/1.2600 resistance, above which would trigger the ‘flag’,’ CS adds.

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.