EUR/USD to confirm an end to the correction once above the 55-DMA at 1.1792 – Credit Suisse

EUR/USD has been capped at its 55-day average at 1.1792 and a close above here remains needed to suggest the corrective setback is over and broader uptrend resumed, as per Credit Suisse. On the flip side, support stays seen at 1.1695/85.

Key quotes

“The strong move higher in EUR/USD has been unable to clear on a closing basis its 55-day average, now at 1.1792, and whilst below here there can remain the risk the corrective phase still has further to run.”

“Support is seen at 1.1724/20 initially, below which can see a fallback to1.1695/85. Removal of this latter area though is needed to add weight to this risk to warn of a more meaningful move lower again for a move back to the 1.1612 recent low and bigger picture, we would still not rule out a move to 1.1495/85, although we would expect this to prove much better support if tested.”

“A close above 1.1791/92 should see bullish pressure return again with resistance seen initially at 1.1808/12, then 1.1873/83. Above 1.1918 remains needed to be cleared for a move back to the 1.2011 high and eventually our 1.2145/55 long-held objective – the ‘neckline’ to the early 2018 top.”