EUR/USD maintains a major top. Economists at Credit Suisse look for strength to stay capped at 1.1695 for a fall to 1.1495/93 – the March 2020 high and 50% retracement of the 2020/2021 bull trend.
Resistance moves to 1.1650
“With a large top in place strength stays seen as temporary and corrective before the risk turns lower again. Support is seen at 1.1587 initially, beneath which should clear the way for a move back to the lows from the end of last week at 1.1562, then our first core objective at 1.1495/93 – the key March 2020 high and the 50% retracement of the rally from the 2020 low. We continue to expect this to prove a good interim floor.”
“Our bias would be to view strength from 1.1495/93 also as temporary and we look for a move below here in due course with support then seen next at 1.1370, then the 61.8% retracement of the rally from the 2020 low at 1.1290.”
“Immediate resistance moves to 1.1650, then 1.1663/68, with 1.1695 now ideally capping to keep the immediate risk lower. Only above 1.1756 though would warn of a ‘false’ break.”
