EUR/USD remains well supported above 1.2105, on course for 1.2350 – Credit Suisse

EUR/USD reversed sharply from the 1.2243/46 February high on Wednesday. Nevertheless, the pair remains well supported above the uptrend from the March low at 1.2105, keeping the market on course for 1.2324/50, in the view of analysts at Credit Suisse.

EUR/USD continues to hold above support at 1.2105

“The EUR/USD pair remains well supported above the confirmed uptrend from the 2021 low at 1.2105/03 and we therefore maintain an upward bias.” 

“A break above 1.2243/45 would then expose the top of the broader range, the YTD high and the potential downtrend from 2018 at 1.2324/1.2350, which is expected to be an even tougher resistance.” 

“A key driver of the recent move higher in our view has been the tightening in US/Germany spreads, which we believe can continue further yet.” 

“Short-term support moves to 1.2159, then intraday support at 1.2125, which ideally holds to keep the risks directly higher. 

“The next support below 1.2125 is at the uptrend from the 2021 lows at 1.2105/03, with only a break below here raising concern of a more pronounced turn back lower within the range.”