Credit Suisse discusses EUR/USD technical outlook and adopts a tactical bearish bias in the near-term.
"A ‘head and shoulders’ top remains in place whilst below 1.1119/26....We still believe there is scope for a move back to the January low and another corrective price low from November at 1.0992/81, below which would now suggest a much more damaging technical breakdown, with the next level then seen at the 78.6% retracement of the Q4 upswing at 1.0956. Below here, another corrective price low is seen at 1.0941, before the ‘measured top objective’ at 1.0925," CS notes.
"Near term resistance moves to 1.1096/99, the potential downtrend from the December high, with only a move back above 1.1119/26 negating the top and complete a base to turn the risks back higher again. Next resistance would then be seen at the 1.1173 high," CS adds.