EUR / USD below Monday morning spread resistance at 1.2259 may maintain risk of further consolidation / corrective weakness, with support seen at 1.2129 / 22, then recent low of 1 , 2059, by Credit Suisse.
Key quotes
“A roller coaster session for EUR / USD on Monday as early weakness was contained at price support at 1.2126 / 16 for an impressive intraday rally, but with subsequent strength then capped at the top of the spread of price compared to yesterday morning opening at 1.2259. Although capped here, the threat of further corrective weakness may remain with support initially at 1.2187 and then returning to the 13 day average at 1.2158 which we are looking to try to hold again.
“A break below 1.2129 / 22 would now raise the prospect of a more concerted setback and a return to the recent low of 1.2059, potentially as far as what we expect to be better support at 1,” 2017/11 – the 38.2% retracement of the November / December Rally and September high – with a better low expected here. ”
“A return above 1.2259 may reaffirm an upward bias for strength to return to the current high of 1.2273, ahead of the March ‘measured baseline’ at 1.2355. Overall, we continue to look for our primary target from the end of July at 1.2518 / 98. “
