EUR/USD is on course for a test of medium-term support at 1.1703/1.1695. Below here would mark a large bearish “head & shoulders” top to see the core trend turn lower with support then seen next at 1.1612/04, before the March 2020 high at 1.1495, as reported by the Credit Suisse analyst team.
See: EUR/USD is at risk of falling below the 1.17 level – Rabobank
Key resistance is seen at 1.1770
“We stay bearish for a test of medium-term support at 1.1703/1.1695. Although a rebound from 1.1703/1.1695 should be allowed for, our broader bias is for an eventual clear and sustained break in due course.”
“A break below 1.1703/1.1695 would mark the completion of a large and important bearish ‘head & shoulders top’ to mark a significant change of trend lower. We would then see support initially at 1.1662 ahead of the September and November 2020 lows at 1.1612/04, which we would look to hold at first.”
“Big picture, we would look for weakness to extend to the key 1.1495 high posted in March 2020.”
“Resistance moves to 1.1770 initially, above which can see a minor base for a recovery back to the 13-day exponential average at 1.1805/10, with fresh sellers expected here.”