Credit Suisse discusses EUR/USD technical outlook and flags a scope for a re-test of 1.122/50 ahead of 1.13.
"EURUSD maintains a bullish ‘reversal day’ from Friday and a clear break above the 200-day average and potential downtrend resistance at 1.1139 would now confirm a reversal back higher to realign the market with our broader bullish bias.
Thereafter, we still look for an eventual move back to 1.1222/50, the December and August 2019 highs, as well as the confirmed downtrend from January 2019, with the next intermediate resistances seen beforehand at 1.1166/69 and then 1.1207/08. Thereafter, a break above 1.1222/50 at any stage is needed to add weight to the view that an important change of trend higher is taking place, with the next and just initial resistances then seen at 1.1283/87, before the 78.6% retracement of the summer fall at 1.1300," CS notes.
"In contrast, first supports are seen at the 55-day average at 1.1093/85, then the 50% retracement of the October/December upswing and potential uptrend at 1.1066/55," CS adds.