Credit Suisse discusses EUR/USD technical outlook and keeps flagging a short-term top, while staying core bullish targeting 1.2155 in the medium-term.
"EURUSD posted a ‘long legged doji’ candlestick to end unchanged after spikes in both directions on Thursday EURUSD ended up posting a volatile but neutral ‘long -logged doji’ after spikes in both directions yesterday and despite the USD weakness seen elsewhere, just looking at EURUSD in isolation, a near -term topping process still looks marginally like the more likely scenario, especially given the poor existing momentum picture, which underlines the weakness we have seen in EUR crosses this week," CS notes.
"A move below 1.1861 would quickly reassert the downward pressure, with next support at 1.1810, then the “neckline” to the potential top seen at 1.173 2 today. Even more important price support is seen at 1.1710/1.1697.
A sustained move above 1.1900 is therefore needed to lessen the topping risk and open up the range highs at 1.1966, above which would confirm the core bull uptrend is resuming, in line with other USD pairs. Regardless of the markets next short term direction, our medium term bias stays for a move to 1.2155, the ‘neckline’ to the 2018 top," CS adds.