EUR/USD is trading in a very narrow range ahead of the Fed, still digesting Draghi. What do the charts tell us? Here is the view from Credit Suisse:
Here is their view, courtesy of eFXnews:
EUR/USD spotlight remains on the “point of breakout” and 200- day average at 1.1068/44, notes Credit Suisse.
“We look for this to ideally hold to keep the bias higher in the range for 1.1176, then a test of the recent price high at 1.1218.
“Extension through here can aim at gap and 78.6% retracement resistance spanning from 1.1230 to 1.1256/59. Above here would find a tougher test at potential trendline resistance from the August 2015 high at 1.1316,” CS projects.
“With the February peak just above at 1.1376 we would look for a fresh cap in this area,” CS adds.
Immediate support shows at 1.1068/44. Capitulation back below here is needed for a more neutral theme to then target 1.1020, then 1.0973,” CS adds.
In line with this view, CS maintains a long EUR/USD from 1.1140, targeting a move to 1.1370 with a stop at 1.1058.
*This trade has been recorded in eFXplus Orders on March 11.
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