EUR/USD to look for a cap below 1.2130 – Credit Suisse

EUR/USD has extended its recovery further than expected after holding the 38.2% retracement of the 2020/2021 uptrend at 1.1695, clearing with relative ease resistance at 1.1990/97. Going forward though, the base case for economists at Credit Suisse is now that the pair will trade in a broad range below resistance at 1.2100/30. 

EUR/USD strength has extended further than expected

“We look for strength to extend to 1.2103/13, but with the potential downtrend from the beginning of the year just above at 1.2130, we would look for a fresh cap here to define the top of a range. Above 1.2130 though would suggest strength can extend back to test the February high at 1.2243.”

“Below 1.1942 is now needed to mark a nearterm top to reinforce a sideways range for a fall back to 1.1860 initially, with more important support seen at 1.1715/1.1695.”