Trump is moving markets but he’s not alone. What do the technical lines say about EUR/USD and GBP/USD? Here is the view from Credit Suisse:
Here is their view, courtesy of eFXnews:
EURUSD‘s recovery remains in place to test 1.0821/28. EURUSD has edged to a marginal new high this week to keep the immediate risks still bullish.
We continue to target a cluster of retracement levels at 1.0821/28 – the 50% retracement of the November 2016/January 2017 fall next
We would look for better selling to show here, but if overcome would then aim at 1.0851/74 – the October 2016 pivot low, the 38.2% retracement of the entire 2015/17 decline and the November 2016 spike high – which we would expect to provide a ceiling.
Support moves to 1.0695/86, with recovery trendline and 13-day average support at 1.0649/35 ideally holding to keep the immediate trend still higher
*As a technical based trade, CS is long EUR/USD targeting 1.0820.*
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GBPUSD holds a base leaving the risks immediately higher to 1.2721/29 with a cap expected at 1.2776. GBPUSD reversed early weakness on Tuesday at basing support at 1.2413/08. The recovery from here keeps a base intact breaking above the 100-day average at 1.2520.
We look for further strength to 1.2721/29 with the bigger obstacle seen at 1.2776, the high from December last year. With the 38.2% retracement of the June/October 2016 fall above at 1.2839 we would look for a cap in this area.
Support moves to 1.2413/06 then 1.2373/70. A break below 1.2261/53 is needed to ease immediate upside pressure.
*As a technical based trade, CS is long GBP/USD targeting 1.2728.*
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