Credit Suisse discusses EUR/USD technical outlook and maintains a bearish bias in the very near-term.
"EURUSD has rebounded from next flagged price support at the late June lows at 1.1185/68 but strength has been capped at its falling 13 -day exponential average at 1.1321/31 as suspected and with a major “head & shoulders” top in place we maintain our core bearish outlook. Support moves to 1.1242 initially, with a break below 1.1205 needed for a retest of 1.1185/68. A break in due course should clear the way for a fall to the “measured top objective” at 1.1075 and with our main objective at the 78.6% retracement and “neckline” to the March/May 2020 base at 1.1019/02," CS notes.
"A close above 1.1321/31 would suggest that a lengthier pause can emerge for a test of resistance next at 1.1375, but with fresh sellers expected here," CS adds.