EUR/USD strength has been capped as expected for now at the 1.1367/77 major barrier but analysts at Credit Suisse expect an eventual break which would lead the 1.1495 March high as Commerzbank also notes.
Key quotes of Credit Suisse
“We look for a correction/consolidation to the strong rally of the past two weeks. Support is seen at 1.1278 initially, below which should add weight to this view with support next at 1.1263/58, then the 38.2% retracement of the rally from late May and price support at 1.1194/84. We look for this latter area to then ideally hold and for a fresh move higher to emerge.”
“Bigger picture, the completion of a base for the EUR EER suggests to us weakness if seen will be corrective and post a pullback we look for a clear break above 1.1367/84, which can then expose the key 1.1495 March high for the year. Whilst this should clearly be respected, a closing break would see the completion of a medium-term bullish reversal, with just initial resistance then seen at 1.1571/96.”
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