EUR/USD test the 1.1268/58 support, rebound expected at 1.1194 - Credit Suisse

FXStreet notes that EUR/USD is currently testing the 1.1268/58 support. Analysts at Credit Suisse see a correction of the rally with a rebound expected at 1.1194 to trigger a retest the 1.1367 area.

“EUR/USD remains capped for now as expected at our main flagged resistance at 1.1367/69 - the 38.2% retracement of the entire 2018/2020 bear trend and long-term downtrend from 2018 - and we continue to look for a correction/consolidation to the strong rally of the past two weeks.” 

“Support moves to 1.1268/58 initially, with next support at 1.1218, then the 38.2% retracement of the rally from late May and price support at 1.1194/84. We look for this latter area to then ideally hold and for a fresh move higher to emerge for a retest of 1.1367/69.”

“Above 1.1320 can reassert an upward bias for strength back to 1.1344, then a retest of 1.1367/69. A clear break above here and then 1.1384 can then expose the key 1.1495 March high for the year. Whilst this should clearly be respected, a closing break would see the completion of a medium-term bullish reversal, with just initial resistance then seen at 1.1571/96.”