EUR/USD set to retest the top of the YTD range at 1.2323/1.2350 – Credit Suisse

EUR/USD has seen a clear break of the 1.2243 February high and economists at Credit Suisse look for a move to the YTD range at 1.2323/1.2350.

See – EUR/USD: Euro’s recent strength to be transitory – CE

Support at 1.2160/50 ideally holds

“EUR/USD has seen a clear break above the 1.2243 February high to resolve the near-term range higher. We look for this to reassert the rally to expose the top of the broader range, the YTD high and the potential downtrend from 2018 at 1.2323/1.2350. For now, our bias is to look for a fresh rejection from here for a correction to the strength of the past two months.”

“Big picture, bullish pressure is seen building and a clear break above 1.2350 in due course should open the door to a move to long-term resistance at 1.2511/1.2598 – the 2018 high, 38.2% retracement of the entire 2008/2017 bear market and 61.8% retracement of the 2014/2017 fall.” 

“Support is seen at 1.2242 initially, then 1.2211/03, which we look to try and hold to keep the immediate bias higher. Below can see a deeper setback to the uptrend, recent low and 13-day ema at 1.2175/50, with a better floor expected here.”