EUR/USD to suffer further weakness towards the 1.2065/51 support area – Credit Suisse

EUR/USD finally saw a more decisive move lower on Friday. Now, analysts at Credit Suisse look for a test of the 55-day moving average and price/retracement support at 1.2065/51.

Support at 1.2065/51 to try and hold

“We look for further weakness to 1.2065/51 – the mid-May low, 38.2% retracement of the rally from late March and now also the rising 55-day average. Our bias remains to then look for a floor here. A break though would expose the 200-day average and May low at 1.1993/86.” 

“Failure to hold the 1.1993/86 support on a closing basis would reinforce the broader sideways range that has been in place all year, opening the door to further weakness to 1.1942 next, then 1.1928/18.” 

“Above 1.2144 is needed to ease the immediate downside bias for a move back to 1.2196.”

“Beyond 1.2218/19 remains needed to reassert the uptrend for a move back to the 1.2255/67 highs and downtrend from January. This remains seen as the barrier to a move to the top of the range for the year at 1.2319/50.”