EUR/USD maintains its break below the 61.8% retracement of the 2020/2021 uptrend at 1.1290. Economists at Credit Suisse stay directly bearish for 1.1185/68 next, then 1.1019/02.
Resistance at 1.1375 caps
“With a major ‘head and shoulders’ top in place, our outlook stays directly bearish with support seen next at the late June lows at 1.1185/68.”
“Whilst a temporary hold at 1.1185/68 should be allowed for we look for a break in due course with the ‘measured top objective’ at 1.1075 and with our main objective at the 78.6% retracement and ‘neckline’ to the March/May 2020 base at 1.1019/02. With support from the key long-term uptrend from the 2000 low seen just below here around 1.0970, our bias remains for this latter area to then prove a much more significant floor for the market.”
“Resistance is seen at 1.1276 initially, then 1.1291/93, above which can see a recovery back to 1.1323, but with the recent high and 13-day exponential average at 1.1362/75 ideally continuing to cap.”
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