EUR/USD to extend its decline towards the 1.1760 mark – Credit Suisse

EUR/USD strength stays seen as temporary ahead of a test of its uptrend from last year and 78.6% retracement of the March/May rally at 1.1833/23. Whilst analysts at Credit Suisse look for this to hold at first, below in due course can see 1.1760.

Resistance remains at 1.1927, then 1.1996

“EUR/USD has not unsurprisingly seen a small bounce following the aggressive sell-off of the past week but we view this as temporary ahead of a move back to 1.1847, then support at 1.1833/23 – the uptrend from the March low last year and the 78.6% retracement of the March/May rally.” 

“We continue to look for the 1.1833/23 region to hold at first for a fresh attempt to see some consolidation, but with a break expected in due course to see weakness extend to the lower end of the converging range, now at 1.1760. With major price and retracement support not far below at 1.1717/1.1695, we look for a fresh floor here.” 

“Resistance stays seen at 1.1922/27 initially, above which can see a minor base for a move to 1.1952, then the 200-day average at 1.1996. With price resistance just above 1.2007 we look for a fresh cap here. A closing break though would ease the immediate the threat of further weakness and reinforce a broader sideways converging range, with resistance seen next at 1.2074.”