EUR/USD stays heading in the right direction to check resistance at 1.2212/43, however with this anticipated to cap for now, in line with the Credit score Suisse analyst workforce.
Help stays at 1.2058/52
“We keep biased greater for a take a look at of resistance subsequent on the 78.6% retracement of the Q1 fall at 1.2212, with scope for the 1.2243 February excessive. For now, we search for energy to ideally fail right here for a contemporary pullback into the broader sideways vary that has been in place since early January.”
“A direct breach of the 1.2243 February excessive can see energy lengthen to check 1.2325/50 – the 2021 excessive and potential downtrend from 2018 – which we’d count on to show a troublesome barrier as soon as once more.
“Help strikes to 1.2125 initially, then 1.2105/02, which we glance to try to maintain. Under can see a deeper setback to 1.2058/52, with higher shopping for anticipated right here.”
“Under the 1.2058/52 area would counsel one more false breakout, nevertheless solely a transfer under the 1.1993/80 lows and notably under the 200-day common at 1.1952 would flip the dangers again decrease once more.”