Credit Suisse discusses EUR/USD technical outlook and maintains a tactical bearish bias in the near-term.
"EURUSD near -term bounce should be allowed for, but with this viewed as temporary. Resistance is seen at 1.1688, with 1.1717/19 ideally capping to keep the immediate risk lower. Above can see a recovery back to the 55 -day average at 1.1743, potentially 1.1776/98, but with this expected to cap," CS notes.
"Support stays seen initially at 1.1627/26 initially, then the 50% retracement of the rally from June at 1.1590. More important support and our objective remains seen at 1.1495/85 – the 38.2% retracement of the entire rally from March, 61.8% retracement of the rally from June and point -of -breakout from the medium -term base. We would then look for a fresh floor here for an attempt to resume the broader uptrend. Should weakness extend though, this would warn of a more serious turn lower, with support next at 1.1323," CS adds.