According to the Credit Suisse analyst team, the EUR/USD is projected to extend its recovery to its 13-day exponential average around 1.1911/17, with price resistance at 1.1945.
“With daily RSI momentum sustaining a bullish divergence and EURUSD recovering above the 78.6 percent retracement of the March/May rise at 1.1824 on Friday following the US payrolls news, there is a probability last week marked an in-range bottom.”
“Above 1.1885, a modest base has been formed, allowing the Friday rebound to continue to the 13-day exponential average at 1.1911/17, and possibly price resistance around 1.1940/45. For the time being, our preference is for 1.1945 to serve as a cap for a new move lower.”
“Above 1.1945, however, there is a greater chance that a low has been established for further strength to what we consider as more critical resistance at the late June high of 1.1976.”
“A fall down to Friday’s low at 1.1808, then what we regard as more crucial support from the lower end of the larger converging range, seen starting at 1.1769, is needed to see the risk remain directly lower.”/n
