FXStreet reports that EUR/USD has suffered a sharp setback and the Credit Suisse analyst team suggests that below 1.2058/52, the pair would warn of a retest of key price and retracement support at 1.1999/86.

“Beneath 1.2058/52 would be seen marking a break to clear the way for a test of what we see as more important support at 1.1999/86 – the early May low and 38.2% retracement of the March/May rally.” 

“Only below 1.1999/86 would warn of a more important top (and a possible even larger ‘head & shoulders’ top for further weakness to the 200-day average at 1.1954 initially, then 1.1943/42.”

“Resistance is seen at 1.2110/14 initially, with a break above 1.2152 needed to reassert an upward bias for strength back to 1.2182/85."