Credit Suisse discusses EUR/USD technical outlook and highlights the importance of the 1.1894/1.1910 for near-term directional bias.
"EURUSD strength has stalled as looked for at what we see as ideally tougher resistance at the 38.2% retracement of the May/August fall and July high at 1.1894/1.1910 and we continue to look for this to cap and for the broader risk to turn lower again. Support moves to 1.1833 initially, then the 55 -day average and 13 -day exponential average at 1.1819/12. Beneath here and then the 1.1793/82 recent lows is needed to suggest the rebound is over and the broader risk has indeed turned lower again with support seen next at 1.1734/26, then 1.1695," CS notes.
"Should strength extend above 1.1910 though this would reinforce the broader converging range that has dominated all year with resistance seen next at the 50% retracement at 1.1965, with the key 200 -day average now at 1.2004. Whilst we would look for a fresh cap here, a closing break would open the door to a move back to 1.2136/49," CS adds.