EUR/USD to extend its recovery towards the 1.1894/1.1910 resistance zone – Credit Suisse

EUR/USD has removed resistance from its 55-day moving average. Analysts at Credit Suisse see scope for a deeper recovery to test a tougher resistance at the 38.2% retracement of the May/August fall and July high at 1.1894/1.1910.

See: EUR/USD to soar towards the 1.20 level in the coming weeks – SocGen

Key support remains at 1.1782

“The recovery can extend further yet and we look for a break above near-term price resistance at 1.1858 for a test of the 38.2% retracement of the May/August fall and July high at 1.1894/1.1910. We look for this to then ideally cap and for the broader risk to then turn lower again.” 

“Should strength extend above 1.1910 though this would reinforce the broader converging range that has dominated all year with resistance seen next at the 50% retracement at 1.1965, with the key 200-day average now at 1.2005.”

“Support is seen at 1.1812 initially, with a break below 1.1793/82 needed to mark a ‘false’ break higher to see the risk turn lower again with support seen next at 1.1734/26.”