EUR/USD held key support at 1.0681/69, rangebound phase to develop – Credit Suisse

EUR/USD is rebounding from key support at 1.0681/76, which reinforces the case for a range to develop over the next few weeks, with key resistance at 1.1000/35, analysts at Credit Suisse report.

Break below 1.0681/69 would open up another leg lower

“EUR/USD has held key support at 1.0681/69. This reinforces our base case scenario of a lengthy period of ranging, with this level expected to define the bottom end of a new range.” 

“The potential for a rangebound phase is also reinforced by the recent false breakout above key resistance at the 50% retracement of the 2021/2022 fall at 1.0944, with the sharp fall likely cleansing positioning significantly.”

“1.1000/35 is now expected to act as the top of the range. In contrast, a break below 1.0681/69 would open up another leg lower, with a lack of meaningful support until 1.0483/0463, where we would again look for a floor if reached.”