EUR/USD: Resistance at 1.1275 to cap at first, ahead of further strength to 1.1703/48 – Credit Suisse

EUR/USD strength is showing signs of stalling near-term. However, economists at Credit Suisse expect the pair to enjoy further gains.

Move below 1.1129/58 can ease the immediate upside bias

We maintain our view of looking for a cap at the 61.8% retracement of the 2021/2022 downtrend and price resistance of 1.1275/8 at first fo a pullback/consolidation. With the USD itself now holding a large bearish continuation pattern weakness if seen will be viewed as temporary ahead of an eventual clear break higher in due course with resistance seen next at 1.1313, then 1.1391/96. 

Big picture, our main objective is the 78.6% retracement of the 2021/2022 fall and the March 2021 low at 1.1703/48.

Support is seen at 1.1161 initially, then 1.1129/58, below which can ease the immediate upside bias for a retreat back towards the 13-day exponential average, now seen at 1.1057, which we look to try and hold on a closing basis.