FXStreet reports that Credit Suisse's analysts note that EUR/USD continues to hold the key support cluster at 1.1818/1.1793. Whilst above here on a closing basis, there remains the possibility we may be seeing the construction of a potential “head and shoulders” base, they suggest.

“EUR/USD continues to successfully hold the key support cluster at 1.1818/1.1793 and whilst above here on a closing basis there remains the real possibility we may be seeing the construction of a potential ‘head & shoulders’ base. A break above 1.1853/55 stays needed to add weight to this view to clear the way for a retest of key resistance at the 38.2% retracement of the May/August fall and recent and July highs.”

“A close above 1.1910 would see a ‘head & shoulders’ base established to signal a more concerted swing higher in the broader range, with resistance seen next at the 50% retracement at 1.1965, with the key 200-day average now at 1.1999, which we would expect to cap at first.”