EUR / USD has moved lower and with a divergence of bearish momentum from the RSI in place, the Credit Suisse analyst team is looking for a correction to the uptrend, but the overall trend is still up.
“The strength of EUR / USD appears to have peaked in the near term with a lower market spread at the opening this morning and with the daily momentum of the RSI failing to confirm the latest high, we are looking for a correction of the basic uptrend to emerge, but with this seen as a temporary break in the wider uptrend. ”
“Support is seen initially at the exponential 13 day average at 1.2145 / 41 before price support at 1.2126 / 16, which we are looking to try to maintain. A breakout would, however, raise the prospect of a more concerted setback and a return to the recent 1.2059 low, potentially as far as what we expect to be better support at 1.2017 / 11 – the 38.2% retracement. of the November / December and September rally high – with a better floor expected here.
“Resistance is initially seen at 1.2213, then the price deviation from the opening this morning at 1.2236 / 59. Returning above here is necessary to reaffirm an upward bias for the strength of back to 1.2273, before March’s “measured baseline” at 1.2355. Overall, we continue to look for our primary target from the end of July at 1.2518 / 98. “