EUR/USD: Risk of a deeper corrective setback, support awaits at 1.1160 – Credit Suisse

EUR/USD remains under pressure and has just lost the 1.12 level after its daily MACD momentum turned lower. The risk for further corrective weakness remains high with support seen at 1.1160, per Credit Suisse.

Key quotes 

“EUR/USD has been capped at near-term resistance at 1.1295 and with the market closing below key support from the 13-day average and with daily MACD momentum having crossed lower our bias remains for a deeper corrective setback.” Support is seen next at 1.1185/84, then 1.1160/54, then the 38.2% retracement of the entire rally from March at 1.1122, which we look to then hold for a fresh attempt to establish a low. Should weakness directly extend we would see the next meaningful support at the 50% retracement and rising 200-day average, where we would look for a better floor to be found.

“Near-term resistance moves to the 13-day average at 1.1233. Above 1.1263 is now needed to reassert a bullish bias for strength back to 1.1339 then a retest of key resistance from the medium-term downtrend and 38.2% retracement of the 2018/2020 fall at 1.1357/69. This remains seen as the barrier to a move to 1.1423/28, then the high for the year at 1.1495.”