EUR/USD: Support at 1.1818/1.1793 to hold on a closing basis – Credit Suisse

EUR/USD continues to hold the key support cluster at 1.1818/1.1793. Whilst above here on a closing basis, there remains the possibility we may be seeing the construction of a potential “head and shoulders” base, although this would only be seen established above 1.1910, as the Credit Suisse analyst team notes.

Pivotal resistance seen at 1.1910

“EUR/USD continues to successfully hold the key support cluster at 1.1818/1.1793 and whilst above here on a closing basis there remains the real possibility we may be seeing the construction of a potential ‘head & shoulders’ base. A break above 1.1853/55 stays needed to add weight to this view to clear the way for a retest of key resistance at the 38.2% retracement of the May/August fall and recent and July highs.”

“A close above 1.1910 would see a ‘head & shoulders’ base established to signal a more concerted swing higher in the broader range, with resistance seen next at the 50% retracement at 1.1965, with the key 200-day average now at 1.1999, which we would expect to cap at first.” 

“A close beneath 1.1793 would mark a more decisive rejection of 1.1910 with support then seen next at 1.1734/26, then 1.1695, a sustained below which would mark a medium-term top.”