EUR/USD: Support at 1.1031/03 to try and hold for a retest and eventual break above 1.1275/88 – Credit Suisse

EUR/USD is expected to see a deeper but still corrective setback to retracement and price support at 1.1031/03, analysts at Credit Suisse report.

Break below 1.1003 would warn of yet further weakness

EUR/USD extends its pullback after being capped at 1.1275/88. This warns of a deeper but still corrective setback with support seen at 1.1055 next, then the 38.2% retracement of the May/July rally at 1.1031. With further price support seen not far below here at 1.1013/03, we will look for an attempt to find a floor here. 

Below 1.1003 though would warn of yet further weakness to support next at 1.0956, potentially the 55-DMA at 1.0900.

Above 1.1148 is needed to reassert an upward bias for strength back to 1.1190 initially and then a retest of 1.1275/88. Although a fresh cap here should be allowed, we maintain our view for an eventual clear break higher in due course with resistance seen next at 1.1313, then 1.1391/96.