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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