EUR/USD: Resistance at 1.1370 to cap the rebound – Credit Suisse

EUR/USD strength has extended further for a test and brief move above the 55-day moving average (DMA), now seen at 1.1305. Ecnomists at Credit Suisse still believe that this is a corrective rebound and expect the pair to plummet to the 1.1019/02 region.

Strength still seen as a corrective rebound

“Our bias is for the 61.8% retracement of the January collapse and price resistance at 1.1344/70 to try and cap further strength and for the broader risk to then turn lower.”

“Support is seen at 1.1266 initially, with a break below 1.1234 needed to add weight to our view for a retest of 1.1120/15. Beneath here in due course should see support next at 1.1075 and then our 1.1019/02 long-held objective – the 78.6% retracement of the 2020/2021 bull trend and top of the base from April/May 2020.” 

“Above 1.1370 can see strength extend further to the 23.6% retracement of the entire 2021/2022 decline at 1.1391, potentially the downtrend from June last year at 1.1420, but with a fresh cap expected here.”