Key support at 107.68/67 ideally holds further weakness with a break of 108.55 needed to alleviate downside pressure, the Credit Suisse analyst team apprise.
Key quotes
“The decline, as sharp as it has been, has not yet extended below the downward sloping ‘neckline’ to the base, as well as the 78.6% retracement of the rally from late May at 107.68/67. We look for this to try and hold further weakness to maintain admittedly diminishing thoughts of a base.”
“Below 107.67 though would see the base decisively negated to keep the immediate risk lower with support seen next at 107.38, then more importantly back at the 107.08/03 late May low.”
“Above 108.55 is needed to ease the immediate downside bias as well as put the market back above its 200-day average, with resistance seen next at 108.95, then 109.27.”
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