EUR/USD: The risk turns lower with support seen at 1.2019 – Credit Suisse

EUR/USD has been capped at its 55-day average and price resistance at 1.2146/90 as expected for the completion of a bearish “reversal day” and analysts at Credit Suisse look for a fresh downturn in the broader range.

Key quotes

“A clear break below 1.2081 sees a minor top compete to reinforce a ranging environment with support seen next at 1.2019 and more importantly back at 1.1952/45, with a fresh hold here looked for. A break though would warn of a more serious downturn to test 1.1800, potentially 1.1695 – the 38.2% retracement of the entire 2020/2021 bull trend.” 

“Resistance is seen at 1.2098 initially, with the immediate risk seen lower whilst below 1.2125/28. Above can see strength back to the 55-day average at 1.2152, but with a break above 1.2190 still needed in our view for a resumption of the core uptrend.”