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EUR/USD will face 1.1287 and 1.1311 resistances before testing the 1.1367/77 major barrier – the 38.2% retracement of the 2018/2020 fall and potential downtrend from early 2018, the Credit Suisse analyst team report.

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Key quotes 

“With the market overbought a knee-jerk pullback should be allowed for, but we look for dips to be well supported with resistance seen next at 1.1287, ahead of the 78.6% retracement and ‘measured base objective’ at 1.1311.” 

“Big picture, the 38.2% retracement of the entire 2018/2020 bear trend and the long-term downtrend from 2018 at 1.1367/77 is seen as the main resistance test, which we expect to prove a much tougher barrier.”

“Support moves to 1.1184/82 initially, with 1.1166/54 needing to hold to keep the immediate risk higher. A break can see a setback to 1.1115/10, potentially the 13-day average at 1.1069/66, but with fresh buyers expected ahead of here.”