FXStreet notes that EUR/USD remains capped below its 200-day average at 1.1998/1.2007. Economists at Credit Suisse look for a test of its uptrend from last year and 78.6% retracement of the March/May rally at 1.1847/24.

“EUR/USD reversed sharply off its highs again on Friday from just ahead of a key cluster of resistances at 1.1986/1.2007 – the 200-day average, price resistance and the 38.2% retracement of the May/June fall, in line with our bias for this zone to cap the market for a resumption of the sell-off from late May.”

“For now, the pair remains trapped in its tight range of the past few days, with support still seen at 1.1920/12 initially, below which would complete a small intraday top. Thereafter, a move below 1.1880 is needed for a move back to the uptrend from March last year and recent low at 1.1847, with the 78.6% retracement of the March/May rally just below at 1.1824.” 

“Whilst a fresh hold at 1.1824 should be allowed for, a break in due course should see the lower end of the converging range, now at 1.1763.”