Credit Suisse discusses EUR/USD technical outlook and looks for the recovery to be ideally capped at 1.2121.
"We remain of the view recent strength from just ahead of our 1.1695 target has still just been a corrective swing higher within a broader sideways range. Support remains seen at 1.1995/90 initially, below which is needed to add weight to this view for a fall back to the recent “outside day” low at 1.1946/42. A break back below here though remains needed to would warn of a near -term top, clearing the way for a decline back to 1.1871/60 initially and eventually back to the 1.1737/03 lows," CS notes.
"With the potential downtrend from the beginning of the year just above at 1.2121 we continue to look for this to cap to define the top of a sideways range. Above 1.2121 though would open the door to a move back to the 78.6% retracement of the Q1 fall at 1.2212, with scope for the 1.2243 February high," CS adds.