EUR/USD: Resistance at 1.1806 to cap the rebound for a retest of 1.17 – Credit Suisse

EUR/USD is trading above 1.1750. However, strength is ideally capped below 1.1806/31 for a fresh attempt to stage a conclusive break of major support at 1.1703/1.1695, as reported by the Credit Suisse analyst team.

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Resistance at 1.1806 to cap with support seen at 1.1726

“Resistance is seen initially at 1.1781/85 ahead of 1.1806 – the recent reaction high and the 23.6% retracement of the May/August fall. With the falling 55-day average not far above 1.1831 we continue to look for a cap here for a retest of 1.1700 again.”

“A close above 1.1831 would reassert the broader sideways range and allow a deeper recovery to the 38.2% retracement and July high at 1.1894/1.1910.”

“Below 1.1726 is needed to see the immediate risk turn lower again with a sustained move below 1.1695 needed to confirm the completion of the large ‘head & shoulders’ top to mark an important change of trend lower. We would then see support below 1.1663/32 next at the September and November 2020 lows at 1.1612/04 and eventually 1.1495.”