EUR/USD to move back to 1.20 on a break of resistance at 1.1910/20 – Credit Suisse

EUR/USD continues to push its way steadily higher and the spotlight turns back to key resistance at 1.1910/20, above which would suggest the consolidation phase from September is finally over for a resumption of the core bull trend for a move back to 1.2011, per Credit Suisse.

Key quotes

“After successfully holding above support at 1.1725 and with the EUR/USD pair back above its rising 13 and 55-day averages as well as price resistance at 1.1834/44, we continue to view this current phase as consolidation within the broader core uptrend.” 

“The immediate spotlight is now back on the recent high and potential trend resistance at 1.1910/20. Beyond here would suggest we are finally seeing the consolidation from early September coming to an end with resistance seen at 1.1962/66 next, then the 1.2011 September high and eventually our 1.2145/55 first core upside objective – the ‘neckline’ to the early 2018 top and 78.6% retracement of the 2018/2020 bear trend. Whilst we would expect a fresh phase of consolidation from here, our broader outlook stays positive for an eventual move above 1.2500.”

“Near-term support moves to 1.1843, then 1.1813/08, below which can see a move back to 1.1788 and then 1.1745/25. Below here would now warn of a fresh increase in downward pressure for a fall back to the potential uptrend from April at 1.1671, with key price support still at 1.1612/04.”