EUR/USD: A counter-trend rebound is likely ahead of a fall to 1.1019/02 – Credit Suisse

EUR/USD is seen at risk of a near-term bounce, but with strength seen as corrective only ahead of an eventual fall to the 1.1019/02 region, economists at Credit Suisse report.

Resistance at 1.1312 ideally caps a rebound

“EUR/USD is seen at risk to a near-term counter-trend rebound. Resistance for a rebound is seen at 1.1186 initially, then 1.1206 with a cluster of levels at 1.1259/72 ideally capping a bounce.” 

“We shall maintain an immediate tactical negative outlook whilst below 1.1312.” 

“Post a rebound we will look for a resumption of the decline with a break of 1.1115 seeing support next at the ‘measured top objective’ at 1.1075 and then our 1.1019/02 long-held objective – the 78.6% retracement of the 2020/2021 bull trend and top of the base from April/May 2020. We would look for a fresh phase of consolidation to develop from here.”