EUR/USD continues to struggle to clear its 200-day average at 1.1892 and the current strength stays seen as a temporary and corrective move higher, the Credit Suisse analyst team reports.
See: Euro cyclical stocks outperformance good news for EUR/USD – MUFG
Support moves to 1.1860, then 1.1823/22
“Support for a setback remains seen at 1.1860 initially, below which can ease the immediate upside bias for a fall back to 1.1823/22, which we look to hold initially. Below 1.1795/87 though is needed suggest a more decisive rejection of the 200-day average has been seen, clearing the way for a move back to 1.1737, then a retest of 1.1703/1.1695.”
“A sustained move above 1.1892 can see strength extend further to the 38.2% retracement of the entire 2021 fall at 1.1948/50, potentially even the mid-March highs at 1.1990/92, but with this 1.1950/1.1992 zone expected to prove a much tougher barrier and we look for a more important cap here.”
“Above 1.1992 though would suggest we have seen a more important low established near the 1.1695 key support.”