EUR/USD: Above key resistance at 1.1019 would mark an important base – Credit Suisse

EUR/USD strength has extended to retest important resistance from its early May high and 200-day average at 1.1009/19, which is being tested and would mark a base, strategists at Credit Suisse apprise.

UOB also expects extra gains above 1.20

Key quotes

“Only a close above 1.1019 would see this achieved to mark a more significant base and important turn higher, with resistance next at 1.1065, then 1.1145/66 – the late March high and 61.8% retracement of the March collapse – which we would expect to cap at first.”

“The 13-day average and price support at 1.0915/10 needs to hold to keep the immediate risk higher in the range. A break can see a fall back to 1.0870/64, but this needing to be removed for a fresh test of the uptrend, today at 1.0815.”