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Another strong session for EUR/USD on Wednesday, with the market closing above the potential downtrend from the late March high at 1.0944 to expose what we see as more important resistance from the early May high and 200-day average at 1.1014/19, per Credit Suisse.

Key quotes

“We would look for fresh signs of a top at the 1.1014 200-day average at 1.1014/19 to maintain the recent range rangebound environment. A close above 1.1019, though, would mark a more significant base and important turn higher, with resistance next at 1.1065, then 1.1145/66 – the late March high and 61.8% retracement of the March collapse.” 

“Support is seen at 1.0918 initially, then 1.0901/1.0897, which we look to ideally hold to keep the immediate risk higher. Below here would provide the first sign of rejection from the 200-day average to see a fall back to the 13-day average at 1.0888.”