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The EUR/USD pair is expected to see a lengthier consolidation/corrective phase, but with this seen as temporary ahead of an eventual break above 1.2355 for a move to 1.2518/98, which analysts at Credit Suisse look to then cap.

Key quotes

“EUR/USD has recovered from near-term price support at 1.2129/22 as expected, but with the USD itself having been to major support our bias remains for further consolidation/corrective weakness before the core uptrend eventually resumes.”

“With resistance at 1.2231 capping, the cross can still keep the immediate risk lower with support seen at 1.2180 initially, then 1.2132/22. Beneath can see a deeper setback to 1.2065/59 – the December low and 38.2% retracement of the November/January rally – where we then look for an attempt to find a floor. Failure to do so can expose the 55-day average and September high at 1.2029/11, but with this expected to prove a better floor.” 

“Above 1.2231 can see a move back to 1.2285, but with a break above here needed to clear the way for a retest of 1.2345/55. Beyond here can reassert the core uptrend with resistance seen at 1.2414 next ahead of 1.2477 and then our core objective at 1.2518/98.”