In a technical note to clients, Credit Suisse outlines the technical setups for targeting the bounces in GBP/USD and EUR/USD along with its current trading positions in the two pairs.
GBP/USD has found some stability on approach to trendline/55-day average and 50% retracement levels at 1.5065/32 and has bounced since then, notes Credit Suisse.
"Resistance shows at 1.5294/5304, but above 1.5398 is needed to aim at 1.5499. Above here would find our core recovery target at 1.5555/69 – the February high and 38.2% retracement of the entire 2014/2015 bear trend," CS projects.
"However, while capped below 1.5294/5304, attention can remain on support. Removal of 1.5032 is needed for a deeper fall to 1.4922 ahead of the 1.4856 pivot low. Only below here would see a retest of the 1.4565 April low," CS argues.
In line with this view, CS maintains a long GBP/USD position from 1.5125, with a stop at 1.5030, and a target at 1.5480.
Turning to EUR/USD, CS notes that it reversed early selling yesterday to bounce back to fresh recovery highs after breaking above 1.1292 – the 23.6% retracement of the 2014/15 fall.
"We would expect selling to show here, but above it can target 1.1389 next, then 1.1450, with a bigger barrier seen at 1.1534. Bigger picture, we would not rule out a move to 1.1808/11," CS projects.
"Support shows at 1.1109, followed by 1.1066/65 and then 1.1030. Below the latter is needed to see scope for 1.0972/60, through which can ease the topside risk, for 1.0916/06," CS adds.
In line with this view, CS maintains a long EUR/USD position from around 1.1105, with a stop below 1.0960, and a target at 1.1445.
'This content has been provided under specific arrangement with eFXnews'.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.