Credit Suisse discusses EUR/USD technical outlook and adopts a neutral bias with a bearish tilt in the near-term.
"Above 1.1864 is needed to clear the way for a move back to 1.1913/30, above which should see a move back to 1.2011 and eventually our 1.2145/55 first major upside objective – the “neckline” to the early 2018 top and the 78.6% retracement of the entire 2018/2020 fall. Below 1.1799 ideally still holds to keep the immediate risk higher. A break can rekindle thoughts of a top, although only below 1.1754 would see this confirmed, with support then seen next and initially at 1.1699/89, then the 55 -day average at 1.1658," CS notes.
"We remain of the view that 1.1930 needs to be cleared to confirm the correction is over for a resumption of the uptrend and the subsequent retreat late yesterday raises the prospect of further sideways ranging and indeed, the threat of a top still remains," CS adds.