EUR/USD to confirm a double top and a more concerted setback below 1.1697 – Credit Suisse

EUR/USD would establish a “double top” below 1.1697 with support then at 1.1630/27. Resistance is seen at 1.1808, as economists at Credit Suisse note. The pair is trading around 1.1770, up 0.25% on the day, after briefly testing the vicinity of the key support in the 1.17 neighbourhood.

Key quotes

“EUR/USD has completed a bearish ‘outside day’ and with daily MACD crossing lower and with support from the 13-day average removed the threat of a ‘double top’ has grown sharply.”

“Key support remains seen at the 1.1699/97 recent lows, below which would see a ‘double top’ confirmed to warn of a more concerted setback with support then seen next and initially at 1.1630/22 – the 38.2% retracement of the rally from late June. Whilst this should be allowed to hold at first, below in due course can see support next at 1.1541 and then the March high at 1.1495, with the ‘measured top objective’ seen just below here at 1.1478.” 

“A break above 1.1801 is needed to ease the pressure off 1.1697 to clear the way for strength back to 1.1851, then a retest of 1.1916/26.”