Credit Suisse discusses EUR/USD technical outlook and sees a scope for further weakness towards 1.1914 on a sustained move below 1.2122.
"With the USD itself having been to major support our bias remains for further consolidation/corrective weakness and below here can now see a small “head & shoulders” top complete to add weight to this view for a deeper setback to 1.2065/59 – the December low and 38.2% retracement of the November/January rally. Whilst we would look for this to hold at first, a break can expose the 55 -day average at 1.2035, but with this expected to prove a better floor. Should weakness extend on a closing basis, we see support next at 1.2011, then 1. 1924/14," CS notes.
"Resistance moves to 1.2180 initially, then 1.2208. Above 1.2231 remains needed to ease the immediate downside bias for a move back to 1.2285, but with a break above here needed to clear the way for a retest of 1.2345/55," CS adds.