EUR/USD: Bearish continuation pattern is under construction – Credit Suisse

EUR/USD price action remains viewed as a potential bearish continuation pattern. Analysts at Credit Suisse look for 1.1387 to continue to cap for an eventual fall to 1.1019/02. 

Resistance at 1.1387 to cap for an eventual fall to 1.1019/02

“We remain of the view price action remains a bearish continuation pattern. Below near-term trend support at 1.1260 should add weight to our view for a fall back to 1.1224/23. Beneath here should confirm completion of the pattern to clear the way for a retest of key price support and the current cycle low at 1.1186/68.” 

“An eventual break below 1.1186/68 can see a resumption of the core bear trend to the “measured ‘head & shoulders’ top objective at 1.1075, then our 1.1019/02 core objective – the 78.6% retracement of the 2020/2021 uptrend and ‘neckline’ to the April/May 2020 base.” 

“A close above 1.1387 would mark a near-term base to clear the way for recovery to 1.1431/40, then the 38.2% retracement of the fall from last September at 1.1464, but with a fresh cap expected here.”