12 Dec 2014
Credit Suisse: EUR/USD might see an aggressive retracement – eFXnews
FXStreet (Barcelona) - The eFXnews team notes, Credit Suisse is alert for a probable correction in the EUR/USD pair, anticipating a potentially aggressive retracement.
Key Quotes
“While Credit Suisse remains long-term bulls of the USD, they are seeing several key targets hit, momentum divergences and DeMark exhaustion signals emerge.”
““While we think a larger top pattern is building and a break below will eventually be seen, near term, we suspect this again holds for now and a retracement higher emerges," CS argues.”
“"Key near-term resistance is placed at 1.2457, above which would see a base and bull "wedge" complete, for a rally to 1.2560/1.2600 – the 55-day average and November high. Although we would expect buyers here, we think there is a real risk this too could be overtaken, which if seen, would suggest strength could extend all the way back to 1.2888/1.2914 – the 38.2% retracement of the entire 2014 collapse. We would look for a fresh top here.," CS projects.”
“Bigger picture, CS thinks that once a correction has run its course would look for an attempt to remove 1.2042 to establish a major top, to target 1.0836/1.0765.”
“In line with this view, CS entered a fresh tactical EUR/USD long today from 1.24, targeting a move to 1.284.”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“While Credit Suisse remains long-term bulls of the USD, they are seeing several key targets hit, momentum divergences and DeMark exhaustion signals emerge.”
““While we think a larger top pattern is building and a break below will eventually be seen, near term, we suspect this again holds for now and a retracement higher emerges," CS argues.”
“"Key near-term resistance is placed at 1.2457, above which would see a base and bull "wedge" complete, for a rally to 1.2560/1.2600 – the 55-day average and November high. Although we would expect buyers here, we think there is a real risk this too could be overtaken, which if seen, would suggest strength could extend all the way back to 1.2888/1.2914 – the 38.2% retracement of the entire 2014 collapse. We would look for a fresh top here.," CS projects.”
“Bigger picture, CS thinks that once a correction has run its course would look for an attempt to remove 1.2042 to establish a major top, to target 1.0836/1.0765.”
“In line with this view, CS entered a fresh tactical EUR/USD long today from 1.24, targeting a move to 1.284.”
This content has been provided under specific arrangement with eFXnews.