EUR/USD: Set For A More Prolonged Correction Before Resuming Core Bull Trend
Credit Suisse discusses EUR/USD technical outlook and sees a scope for a prolonged correction phase in the near-term.
"The EUR TWI recently confirmed its top and looks set for a two - to -four week correction lower and we
therefore maintain our view that EURUSD is also set to see a more
prolonged corrective phase before we eventually see a resumption of its
core underlying bull trend," CS notes.
"A sustained move below a cluster of supports at 1.1688/85 should keep the immediate risk lower for weakness back to the 1.1612 recent low, then the 50% retracement of the rally from late June at 1.1590. Whilst we would look for a fresh rebound from this latter level, there remains a real risk we could eventually see a test of what we expect to be better support at 1.1495/85 - the March high and 38.2% retracement of the entire March/September rally. We continue to look for this to prove a solid floor and an excellent entry point to the core uptrend if reached," CS adds.