EUR/USD: Downtrend at 1.1764/84 to cap the rebound – Credit Suisse

EUR/USD remains capped as expected at a cluster of resistances at 1.1764/84 – the 55-day average and downtrend from early September – and analysts at Credit Suisse continue to look for the risk to turn lower again from here.

Key quotes

“EUR/USD has been capped as expected at tougher resistances at 1.1764/84 – the 55 -day average, downtrend from the early September peak and 38.2% retracement of the September fall – and with a top in place we maintain our view of looking for a more decisive rejection from here and for the risk to turn lower again.”

“Support moves to 1.1685 initially, with a break below 1.1665/61 needed to add weight to our view to reassert a bearish tone again with support then seen next at 1.1642 ahead of the 1.1598 recent low, with 1.1495/85 still our ‘ideal’ objective. Our bias remains to look for this to then prove a solid floor for a resumption of the core uptrend.”

“Near-term resistance moves to 1.1752, then 1.1770. A close above 1.1784 would see the top negated to suggest the correction is already over and broader uptrend resumed with resistance seen next at 1.1827, then 1.1873/83, with 1.1918 needing to be cleared for a move back to the 1.2011 high and eventually our 1.2145/55 long-held objective.”