EUR/USD: Scope for a deeper corrective setback to test 1.2065/59 – Credit Suisse

EUR/USD trades flat in the mid-1.2100 on Tuesday. Economists at Credit Suisse continue to look for a setback with support seen at 1.2129/22, then 1.2065/59. On the flip side, resistance is seen at 1.2385.

Key quotes

“Near-term, we continue to look for a rebound from price support at 1.129/22 as flagged, but our bias is seen for a break in due course and a deeper setback to 1.2065/59 – the December low and 38.2% retracement of the November/January rally – where we then look for an attempt to find a floor. Failure to do so can expose the 55-day average and September high at 1.2020/11, but with this expected to prove a better floor.” 

“Resistance is seen at 1.2174 initially, with the immediate risk seen lower whilst below 1.2231. Above can see a move back to 1.2285, but with a break above here needed to ease the downside bias for a retest of 1.2345/55. Beyond here can reassert the core uptrend with resistance seen at 1.2414 next ahead of 1.2477 and then our core objective at 1.2518/98.”