EUR/USD: rejection at 1.1671 reasserts the downtrend towards 1.1495 – Credit Suisse

EUR/USD has posted a bearish “reversal day” to mark a more decisive rejection of 38.2% retracement resistance at 1.1671. Economists at Credit Suisse look for a resumption of the downtrend to the 1.1495/93 mark.

Resistance at 1.1671 to cap for a resumption of the downtrend

“Support moves to 1.1590 initially, then 1.1571/66, below which should clear the way for a fall back to 1.1529/24, then our 1.1495/93 first objective – the key March 2020 high and 50% retracement of the 2020/2021 bull trend.”

 Whilst we would look for the 1.1495/93 to hold at first for a fresh consolidation phase, below in due course should clear the way for a move to 1.1290.” 

“Above 1.1671 would reassert an upward bias for a test of the 55-day average at 1.1706/11. Suspect though we still need to see a close above here to raise the prospect of a more concerted recovery to 1.1756, then the 38.2% retracement of the May/October fall at 1.1808.”