EUR/USD to prolong the corrective phase while below 1.2231 – Credit Suisse


Share:

EUR/USD has recovered strongly after holding as expected the 38.2% retracement of its November/January rally and 55-day average at 1.2065/54, but with a break above 1.2223/31 needed to confirm the correction is over and the core uptrend resumed, per Credit Suisse.

Key quotes

“EUR/USD has recovered as expected after falling to test and hold our first downside objective at 1.2067/54 – the December low, 38.2% retracement of the November/January rally and rising 55-day average. Strength though has been capped at the 13-day average, currently at 1.2167 and with a small ‘head & shoulders’ top still in place there remains the risk for further corrective weakness yet before the broader uptrend resumes.” 

“Support moves to 1.2102/00 initially, then 1.2085. Below 1.2054 on a closing basis can see support next at the September high at 1.2011 ahead of the 23.6% retracement of the entire 2020/2021 uptrend at 1.1945, with the ‘measured top objective’ at 1.1924/14. We would then look for an attempt to establish a fresh and ideally important floor here.” 

“Above 1.2167 can see strength extend further to 1.2179/80, then 1.2223/31, but with this needing to be cleared to negate the top to suggest the corrective setback is coming to an end for a move back to the 1.2350/55 highs.”

 

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD struggles near 1.0750, focus on ECB-speak, Powell

EUR/USD struggles near 1.0750, focus on ECB-speak, Powell

EUR/USD is consolidating gains near 1.0750 in the early European morning. The main currency pair is capitalizing on a broad-based US Dollar retreat, in the face of sluggish Treasury bond yields and a mild risk-on market profile. ECB commentary and Powell's speech eyed. 

EUR/USD News

GBP/USD clings to gains around 1.2050 ahead of Powell

GBP/USD clings to gains around 1.2050 ahead of Powell

GBP/USD is trading close to 1.2050, preserving gains ahead of the London Open. The upbeat market mood and renewed Brexit optimism boes well for the Pound Sterling while the US Dollar retreats with Treasury yields ahead of Fed Chair Powell's speech. 

GBP/USD News

Gold encounters barricades around $1,875 as USD Index attempts recovery

Gold encounters barricades around $1,875 as USD Index attempts recovery

Gold price (XAU/USD) is facing pressures in recovery extension above the critical resistance of $1,875.00 in the Asian session. The precious metal has sensed selling interest as the US Dollar Index (DXY) has attempted a recovery after correcting to near 103.10.

Gold News

Will Bitcoin price test $20,000 again?

Will Bitcoin price test $20,000 again?

Bitcoin price shows clear signs of distribution occurring on the four-hour chart, which indicates the possibility of a trend reversal. Moreover, BTC has been consolidating for more than two weeks with no direction in sight.

Read more

Central banks, markets and the economy: Three times wrongfooted

Central banks, markets and the economy: Three times wrongfooted

In the US, financial conditions have eased in recent months and weighed on the effectiveness of the Fed’s policy tightening. Jerome Powell recently gave the impression of not being too concerned, so markets rallied.

Read more

Forex MAJORS

Cryptocurrencies

Signatures