EUR/USD: False breakout in both directions; tactically bearish for 1.0786-62 - Credit Suisse

eFXdata reports that Credit Suisse discusses EUR/USD technical outlook and adopts a tactical bearish bias targeting a move towards 1.0786-62

"EURUSD remains back in the middle of its range and exactly where we started the month after false breakouts in both directions. Going forwards though, the broader trend still points lower in our view, with MACD negative across all time horizons.

Furthermore, the market is now showing tentative signs of topping out in the shorter term after breaking back below the 200-day average at 1.1078 on Monday. Key support is now seen at 1.0953, below which would complete an intraday 'head and shoulders' top to confirm that the downtrend is resuming. The next key levels are seen at 1.0896/89, before the long term uptrend from 2000 at 1.0786/62, then the recent year-to-date low at 1.0635. A move below these latter levels should finally allow momentum to re-accelerate for a medium term move lower," CS notes.

"Short term resistance moves to 1.1056/78, which now ideally caps the market to maintain the potential for a top. Thereafter, more important resistance is at 1.1148/66," CS adds.