EUR/USD needs to clear 2018 top at 1.1923/26 to ease threat of correction – Credit Suisse

EUR/USD briefly moved above the 1.1909 recent high yesterday but was then abruptly stopped at the 1.1923/26 key resistance. The pair needs to surpass the mentioned 1.1926 level to confirm a direct resumption of the uptrend for 1.2140/55, per Credit Suisse.

Key quotes

“With daily RSI momentum now showing a clear bearish divergence we remain of the view the risk is for a lengthier consolidation phase before the core uptrend resumes, potentially even a ‘double top’.” 

“Near-term support moves to 1.1818, then more importantly at 1.1799/92, below which can add weight to this consolidation scenario with support next at 1.1774, then 1.1721. Only below 1.1699/97 though would see a “double top” established with support then seen next at 1.1630/22 – the 38.2% retracement of the rally from late June.” 

“Support at 1.1792 holding can maintain a high-level range with resistance seen at 1.1894 initially, above which can see a retest of 1.1916/26. An eventual move above here should confirm a resumption of the uptrend to our next resistance/’objective’ at 1.214 0/55 – the ‘neckline’ to the early 2018 top.”