Credit Suisse discusses EUR/USD technical outlook and maintains a bullish bias in the near-term.
"EURUSD has started the week strongly, surging sharply higher again following its weekly close above 1.1495 and the completion of a medium-term base and with the USD expected to weaken materially further after the completion of a major top we maintain our core bullish outlook.
Tougher resistance seen starting at the potential downtrend from the 2007 peak at 1.1798, then the September 2018 high and 61.8% retracement of the fall from 2018 at 1.1815/22. We look for this to cap at first for a pullback/consolidation. Big picture, we continue to look for 1.1997 and eventually a challenge on its early 2018 “neckline” at 1.2155, which we expect to prove a tougher barrier," CS notes.
"Support moves to 1.1659 initially, then 1.1637/22, which we look to hold to keep the immediate risk higher. Only back below 1.1581 though would be seen marking near-term exhaustion," CS adds.