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EUR/USD uptrend is losing momentum but whilst support at 1.2208 holds the immediate risk can stay higher for 1.2355 and eventually 1.2518/98, analysts at Credit Suisse apprise.

Key quotes

“EUR/USD strength came to an abrupt halt at the end of last year for a fairly sharp pullback and with a triple bearish RSI divergence in place, the trend continues to lose momentum. Despite this though, support from the 13-day exponential average continues to hold, currently seen at 1.2208 and our bias remains to give the upside the immediate benefit of the doubt still.” 

“Resistance is seen at 1.2288 initially, then the high from last week at 1.2310, above which should see the March ‘measured base objective’ at 1.2355. Although a pullback from here should be allowed for we continue to look for a move in due course to our core objective from late July at 1.2518/98. We expect to this then prove a major barrier and we look for a top here.” 

“Below 1.2208 would raise the prospect of a more concerted setback and a fall back to 1.2172 initially, then 1.2129/22, with fresh buyers expected to show here.”