Credit Suisse discusses EUR/USD technical outlook and sees a scope for further correction in the near-term.
"The strong move higher in EURUSD 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 fall back 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,' CS notes.
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," CS adds.