EUR/USD strength has stalled as expected at its 200-day average at 1.1889. Whilst further near-term consolidation should be allowed for, a break in due course can expose the 38.2% retracement of the entire Q1 fall at 1.1950, the Credit Suisse analyst team briefs.
The spotlight remains on the key 200-day average at 1.1889, with the risk still seen for a break higher
“EUR/USD strength has stalled as expected for now at the 200-day average at 1.1889 and near-term consolidation around here should still be allowed for.”
“With daily MACD momentum having turned higher though our bias is for this to be followed by a closing break higher in due course. This should then see strength extend further to the 38.2% retracement of the entire 2021 fall at 1.1948/50, potentially even the mid-March highs at 1.1990/92, but with this 1.1950/1.1992 zone expected to prove a much tougher barrier and we look for a more important cap here.”
“Support for a setback from the 200-day average moves to 1.1860 initially, below which can ease the immediate upside bias for a fall back to 1.1823/22, which we look to try and hold. Below 1.1795/87 though is needed suggest a more decisive rejection of the 200-day average has been seen, clearing the way for a move back to 1.1737, then 1.1703/1.1695.”
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.