EUR/USD: Corrective rebound may be over, scope for a dive to 1.1752 – Credit Suisse

EUR/USD has completed a bearish “outside day” from ahead of 1.1949 to suggest its rebound may be over for a move back to 1.1752, according to economists at Credit Suisse.

See: EUR/USD to tackle the 1.1770/50 region as ECB maintains pace of bond purchases – Westpac 

Key resistance moves to 1.1901/10

“We look for a clear break below 1.1831 to reinforce the reversal for a move back to 1.1799, then 1.1773/63. Below 1.1754/52 is needed to see bearish momentum return again for a test of medium-term support at 1.1703/1.1695.” 

“Below the 1.1703/1.1695 area at any stage would mark a large and significant bearish ‘head & shoulders top’ to mark a significant change of trend lower, with support then seen next and initially at 1.1612/04.” 

“Resistance moves to 1.1850 initially, then 1.1873, with 1.1901/10 needing to cap to maintain the bearish ‘outside day’ and the immediate downside bias.”