Credit Suisse discusses EUR/USD technical outlook and maintains a bearish bias in the near-term.
" EUR/USD is starting to recover after again holding key price support from the YTD and 2017 lows at 1.0350/41 and whilst our broader outlook stays firmly negative, we see increasing risk for a lengthier consolidation phase. A close above the 13 -day exponential average at 1.0555 can add weight to this view for a recovery back to what we continue to see as more important resistance, starting at 1.0627 and stretching up to the 55 -day average at 1.0652, which we continue to look to cap on a closing basis. Only above 1.0774/88 though would mark a “double bottom” base and a more significant move higher," Cs notes.
"Support is seen at 1.0470 initially, then 1.0445, below which should clear the way for a retest of 1.0358/41. An eventual break below here should act as the catalyst for a resumption of the core downtrend with support seen next at 1.0217/09 and eventually parity/.9900," CS adds.