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EUR/USD has seen a decisive break above 1.2155 and analysts at Credit Suisse maintain a core bullish outlook for a resumption of the uptrend to 1.2355 and eventually what is expected to be tougher resistance at 1.2518/98.

Key quotes

“Assuming the EUR/USD pair sees a weekly close above r 1.2145/55, which we see no reason not to, we maintain our core bullish outlook and look for the rally to extend.”

“We look for a move to 1.2292/99 next, ahead of the March ‘measured base objective’ at 1.2355, from which we look or an initial pullback.”

“Big picture, we continue to look for an eventual move to the 1.2414 April 2018 high next and then our core objective from late July at 1.2518/98 – the 2018 high, 38. 2% retracement of the entire 2008/2016 bear market and 61.8% retracement of the fall from 2014 – which we expect to prove a much tougher barrier.” 

“Support moves higher to 1.2213 initially, then 1.2191, below which can ease the immediate upside bias, but with the recent intraday lows and 13-day exponential average at 1.2126/16 ideally holding further weakness. A break would warn of a fresh consolidation, with support seen next at 1.2059.”