Credit Suisse on EUR/USD – support and resistance levels

Technical Analysis

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Remarks overnight via CS on the euro:

EUR/USD extends its rejection from our long-held ‘measured base objective’ at 1.2355 and with RSI momentum holding a triple bearish divergence and with the USD rebounding from major support and our next core objective, we continue to look for a consolidation phase to emerge

Below price support at 1.2208 has seen a minor top complete with support seen next at 1.2129/22. 

  • Whilst a rebound from here should be allowed for at first, our bias is seen for a break in due course and a deeper setback to 1.2065/59 – the December low and 38.2% retracement of the November/January rally – where we then look for an attempt to find a floor

Resistance is seen at 1.2231 initially, with a break above 1.2285 needed to ease the immediate downside bias for a retest of 1.2345.55. 

  • Beyond here can reassert the core uptrend with resistance seen next at 1.2414 next ahead of 1.2477 and then our core objective from last July at 1.2518/98

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