EUR/USD: Further corrective weakness to face support at 1.1222 – Credit Suisse

The EUR/USD pullback is viewed as corrective by analysts at Credit Suisse who expect the weakness to extend toward the 1.1222/12 support, then 1.1160/54.

Key quotes

“EUR/USD weakness has now extended to its 13-day exponential average at 1.1222/12. Although this is holding for now the immediate risk is seen lower and below 1.1212 would suggest the setback can extend further with support seen next at 1.1160/54, then more importantly 1.1122 – the 38.2% retracement of the entire rally from March. We would look for a better floor here.” 

“Resistance is seen at 1.1292 initially, ahead of 1.1323 and then 1.1341. Above here is needed to suggest the correction is over and the rally can resume with resistance then seen at 1.1403 ahead of 1.1423/28, then the 1.1495 high for the year. Whilst this latter level should clearly be respected, a break would mark a medium-term base.”