Credit Suisse discusses EUR/USD technical outlook and flags a scope for a top and a more concerted retracement lower on a break below 1.1764/54.
"With key price support from the recent lows seen just below at 1.1764/54, we would look for an attempt to find a floor here at first. But with a potential momentum top in place and a bearish divergence the risk for a top is seen increasing and below 1.1754 can confirm a top to open the door to a more concerted move lower with support seen next at 1.1699/89 – the August low and 38.2% retracement of the rally from late June – then what we look to be better support from the 55 -dayaverage and 50% retracement at 1.1598/90," CS notes.
"Immediate resistance moves to 1.1859, above which is needed to ease the immediate downside bias with resistance then seen next at 1.1878, then 1.1913. Above 1.1930 is needed to suggest the correction is over for a resumption of the uptrend and a move back to 1.2011 and eventually 1.2145/55," CS adds.