FXStreet reports that EUR/USD is trading above 1.1750. The Credit Suisse analyst team suggests that strength is ideally capped below 1.1806/31 for a fresh attempt to stage a conclusive break of major support at 1.1703/1.1695.

“Resistance is seen initially at 1.1781/85 ahead of 1.1806 – the recent reaction high and the 23.6% retracement of the May/August fall. With the falling 55-day average not far above 1.1831 we continue to look for a cap here for a retest of 1.1700 again.”

“A close above 1.1831 would reassert the broader sideways range and allow a deeper recovery to the 38.2% retracement and July high at 1.1894/1.1910.”

“Below 1.1726 is needed to see the immediate risk turn lower again with a sustained move below 1.1695 needed to confirm the completion of the large ‘head & shoulders’ top to mark an important change of trend lower.”