EUR/USD: Resistance at 1.2146 /90 to cap to define the top of a sideways range – Credit Suisse

EUR/USD strength is expected to be capped for now at its 55-day average and price resistance at 1.2146/90 for the unfolding of a sideways range, in the view of the Credit Suisse analyst. 

Key quotes

“EUR/USD strength has stalled as expected at the 55-day average and price resistance from the late January highs at 1.2146/90 and we continue to look for this to cap for now to define the top of a range.” 

“Support remains at 1.2113/08 initially, below which is needed to see a minor top complete to add weight to our near-term ranging roadmap for a retreat back to 1.2088, with 1.2046/19 then ideally holding further weakness. A break would raise the prospect of a more protracted corrective phase and further weakness to 1.1978 ahead of a retest of the recent low and 23.6% retracement of the entire 2020/2021 uptrend at 1.1952/45.”

“Big picture, we look for an eventual break higher above 1.2190 for a resumption of the core uptrend and a move back to the 1.2345/55 highs and eventually we think our 1.2518/98 long-held and ultimate objective.”