EUR/USD: Scope for a recovery back to 1.1945 – Credit Suisse

EUR/USD is expected to extend its recovery to its 13-day exponential average at 1.1911/17, potentially price resistance at 1.1945, as reported by the Credit Suisse analyst team.

The EUR/USD decline is losing momentum

“Friday post the US payrolls report has seen EURUSD recover back above the 78.6% retracement of the March/May rally at 1.1824 and with daily RSI momentum holding a bullish divergence there is a risk last week may have marked an in-range low.” 

“Above 1.1885 suggests a minor base has also been completed to allow the recovery from Friday to extend further to test the 13-day exponential average at 1.1911/17, potentially price resistance at 1.1940/45. For now, our bias is for 1.1945 to then ideally cap for a fresh move lower.”

“Above 1.1945 though would further increase the risk a low is in place for further strength to what we see as more important resistance at the late June high at 1.1976.” 

“Below support at 1.1850 is needed to see the risk remain directly lower for a fall back to Friday’s low at 1.1808, then what we see as more important support from the lower end of the broader converging range, seen starting at 1.1769.”