EURUSD is now very close to a series of retracement resistances around 1.0787/0822. Economists at Credit Suisse we look for a turn back lower from here, for a move to 1.0608/0599 initially, then 1.0350/41.
Resistance at 1.0839 expected to cap
“EUR/USD has now seen the anticipated recovery to the 38.2% retracement of the fall from February, the 55-day average and the mid-April lows at 1.0758/87. We expect a much tougher barrier here and for the medium-term downtrend to reassert itself from here and we therefore now turn tactically bearish again.”
“We note that there is further important resistance just above at 1.0822/39, which includes the back of the broken uptrend from 2017, where we look for a solid cap.”
“Support moves to 1.0642, then 1.0608/0599, below which would confirm that the risks have turned lower again for a retest of 1.0350/41.”
“Above 1.0822/39 is not our base case, however it would trigger a deeper-than-expected recovery, with the next level at 1.0923/37.”