EUR/USD continues to find buying support ahead of the 1.1105/1087 recent lows, and the rebound from here leaves prices trapped in a broader range, notes Credit Suisse Techs.
"Resistance shows first at 1.1296, with trendline resistance at 1.1378/82 expected to cap. However, a break above here can suggest a better recovery is underway for 1.1460/74 next," CS projects.
"Support moves to 1.1213, then 1.1146 with a break of 1.1105/1087 needed for a deeper slide to the mid-August low/78.6% retracement support at 1.1018/03, with potential trendline support showing now at 1.0896," CS adds.
In line with this view, CS is currently flat on EUR/USD and runs a limit order to sell around trendline resistance at 1.1360, with a stop at 1.14, and a target at 1.1150.
Turning to NZD/USD, CS notes that the pair was unable to push above potential trendline resistance at .6416 and has staged a turn lower.
"Near-term support shows at .6264, ahead of the cycle low at .6236. Whilst we would expect initial buying to show here, a break in due course can see an extension lower for .6196, followed by .6152, the low of June 2008," CS projects.
"Immediate resistance moves to .6366, ahead of .6416/26. Above here is needed to target a tougher barrier from the mid-September high and falling 55-day average at .6457/85 where we would look for an attempt to cap, CS adds.
In line with this view, CS is currently flat on NZD/USD and runs a limit order to sell around trendline resistance at 0.644, with a stop at 0.6490, and a target at 0.6250.
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