EUR/USD has suffered a sharp setback. Below 1.2058/52, the pair would warn of a retest of key price and retracement support at 1.1999/86, the Credit Suisse analyst team reports.
Resistance is seen at 1.2110/14
“Beneath 1.2058/52 would be seen marking a break to clear the way for a test of what we see as more important support at 1.1999/86 – the early May low and 38.2% retracement of the March/May rally.”
“Only below 1.1999/86 would warn of a more important top (and a possible even larger ‘head & shoulders’ top for further weakness to the 200-day average at 1.1954 initially, then 1.1943/42.”
“Resistance is seen at 1.2110/14 initially, with a break above 1.2152 needed to reassert an upward bias for strength back to 1.2182/85, then what we expect to be tougher resistance at the 78.6% retracement of the Q1 fall and February high at 1.2212/43, where we will look for a fresh cap.”
