FXStreet reports that EUR/USD strength stays seen as temporary ahead of a test of its uptrend from last year and 78.6% retracement of the March/May rally at 1.1833/23. Whilst analysts at Credit Suisse look for this to hold at first, below in due course can see 1.1760.

“EUR/USD has not unsurprisingly seen a small bounce following the aggressive sell-off of the past week but we view this as temporary ahead of a move back to 1.1847, then support at 1.1833/23 – the uptrend from the March low last year and the 78.6% retracement of the March/May rally.” 

“We continue to look for the 1.1833/23 region to hold at first for a fresh attempt to see some consolidation, but with a break expected in due course to see weakness extend to the lower end of the converging range, now at 1.1760.” 

“Resistance stays seen at 1.1922/27 initially, above which can see a minor base for a move to 1.1952, then the 200-day average at 1.1996. With price resistance just above 1.2007 we look for a fresh cap here.”