EUR/USD has seen a conclusive break above key 200-day average/price resistance at 1.1009/19 to turn the core trend higher, with resistance seen at 1.1145/66 next and eventually at 1.1369, per Credit Suisse.
“EUR/USD strength has accelerated sharply after the conclusive break above its early May high and 200-day average at 1.1009/19 and with long-term uptrend support from 2000 having also held in March/April/May this sees the core trend turn higher with the next resistance test seen at 1.1145/66 – the late March high and 61.8% retracement of the March collapse.”
“Whilst we would expect the resistance at 1.1145/66 to cap at first, a direct break can see resistance next at 1.1237 ahead of the 78.6% retracement at 1.1311. The 38.2% retracement of the entire 2018/2020 bear trend at 1.1369 is seen as the main resistance test and with the long-term downtrend from 2018 placed at 1.1387, we look for a top here.”
“Support is seen at 1.1069/66 initially then 1.1035/30, with the 200-day average, ‘neckline’ to the base and yesterday’s low at 1.1011/1.0991 now ideally holding.”