EUR/USD seemed to have been on a recovery path, but the technical prospects look somewhat gloomy.
Here is their view, courtesy of eFXdata:
Credit Suisse discusses EUR/USD technical outlook and maintains a tactical bearish bias targeting a move towards 1.0815.
“EURUSD has seen its expected break of trend support from August 2018 at 1.0902 and with the range of the past month resolved to the downside we look for what we think can be a quick move back to what we look to be potentially more meaningful support at 1.0815 – the 78.6% retracement of the 2017/2018 rally – where we would look for a fresh floor. A direct break though can expose the potential long-term uptrend from 2000, currently seen at 1.0700, where we would be alert to a fresh attempt to establish a low,” CS notes.
“Immediate resistance moves to 1.0914 initially, then 1.0948, which we now look to try and cap to keep the immediate risk lower. Above can see a recovery back to the 13-day average and price resistance at 1.0966/68, but with this then expected to cap again. Above can see a deeper recovery to 1.1025/27,” CS adds.
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