EUR/USD needs to hold support at 1.0905/1.0833 to suggest weakness is corrective – Credit Suisse
|EUR/USD has corrected sharply lower. Economists at Credit Suisse analyze the pair’s technical outlook.
Below 1.0833, weakness can extend further yet to test the 200-DMA at 1.0714
There is scope for further weakness yet to the 1.0905/1.0833 support cluster – the rising 55-DMA, uptrend from last September and early July lows. This needs to hold to suggest weakness is corrective ahead of strength back to 1.1152 and then a retest of 1.1275/77. An eventual break above here can see resistance next at 1.1391/96 ahead of 1.1495 and eventually 1.1703/1.1748 – the March 2021 low and 78.6% retracement of the 2021/2022 fall.
Below 1.0833 though would neutralise our current tactical view and suggest weakness can extend further yet to test the 200-DMA, currently at 1.0714, where we would expect fresh buyers to show.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.