EUR/USD: Threat of a top remains with key support seen at 1.2160/59 – Credit Suisse

EUR/USD remains under pressure and a break below 1.2160/59 would mark a near-term top to warn of a fall back to 1.2053/51, the Credit Suisse analyst team reports.

See: EUR/USD to drop substantially towards 1.15 by year-end – ABN Amro

Resistance moves to 1.2216/17

“With daily RSI momentum holding a clear bearish divergence the threat of a top remains. Below 1.2160/59 would see this confirmed to clear the way for a fresh swing lower within the broader range of the past few months.” 

“We would see support at 1.2134 initially ahead of 1.2108/03 and then 1.2053/51 – the mid-May low and 38.2% retracement of the March/May rally and ‘measured top objective’. Our bias would then be to look for a fresh and ideally important floor here.” 

“Resistance stays seen at 1.2216/17 initially, above which is needed to ease the immediate downside bias, with a break above 1.2241 needed to ease the topping threat for a move back to 1.2264/67. Above here can reassert the uptrend for a test of 1.2322/1.2350.”