FXStreet reports that the Credit Suisse analyst team expects that EUR/USD to extend its recovery to 1.1949, the 38.2% retracement of the May/July fall.

“Resistance is seen initially at 1.1896/97, ahead of the 1.1910 high of last week and then our corrective objective of the 38.2% retracement of the fall from May and price resistance at 1.1945/49. Our bias would then be for this to prove a tougher cap and for the risk to turn back lower from here.” 

“Should strength instead extend this can allow the recovery to extend further yet with resistance seen next at the late June high at 1.1976, just ahead of the 55-day average at 1.1985, with a fresh cap expected here.” 

“Support at 1.1850/40 needs to hold to keep the immediate risk higher. Below can ease the immediate upward bias for a move back to 1.1799, then 1.1773/63.”