FXStreet notes that EUR/USD has gapped lower and with a bearish RSI momentum divergence in place, the Credit Suisse analyst team looks for a correction to the uptrend but with the broader trend still seen higher.

“EUR/USD strength looks to have peaked near-term with the market gapping lower at the open this morning and with daily RSI momentum having failed to confirm the latest high, we look for a correction to the core uptrend to emerge, but with this seen as a temporary pause within the broader uptrend.” 

“Support is seen initially at the 13-day exponential average at 1.2145/41 ahead of price support at 1.2126/16, which we look to try and hold. A break though would raise the prospect of a more concerted setback and a fall back to the 1.2059 recent low, potentially as far as what we expect to be better support at 1.2017/11 – the 38.2% retracement of the November/December rally and September high – with a better floor expected here.” 

“Resistance is seen at 1.2213 initially, then the price gap from the open this morning at 1.2236/59."