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EUR/USD maintains its recovery after the bullish “reversal day” from the 23.6% retracement of the entire 2020/2021 rally at 1.1945/14 and analysts at Credit Suisse look for a test of 1.2156/90.

Key quotes

“EUR/USD maintains the strong tone following the bullish ‘reversal day’ from our target at 1.1945/14 – the 23.6% retracement of the entire 2020/2021 uptrend and first ‘measured top objective’ – and has cleared with ease the 38.2% retracement of the January/February fall at 1.2104. This sees the immediate risk stay higher with resistance seen next at the 55-day average at 1.2138, ahead of price resistance from the late January highs at 1.2156/90 zone, with this then expected to cap at first to define the top of a range.” 

“Big picture, we look for an eventual break higher for a resumption of the core uptrend and a move back to the 1.2345/55 and eventually we think our 1.2518/98 long -held and ultimate objective.” 

“Support is seen at 1.2108 initially, then 1.2088, with 1.2046/19 now ideally holding to keep the immediate risk higher. Below can see a fall back to potential trend support at 1.1968.”