EUR/USD has extended its setback. Economists at Credit Suisse expect the pair to trade within a broad 1.05-1-10 range for the time being.

Break above 1.0802/06 needed to clear the way for strength back to test 1.0944

“Near-term momentum stays lower and has now crossed below zero, which suggests a deeper corrective setback to next support at the 38.2% retracement of the 2022/2023 rally and early January YTD low at 1.0483/63. We look for this to prove better support if tested though and to act as the bottom end of a broad ~1.05-1.10 range for now.”

“Above 1.0802/06 is needed to clear the way for strength back to test the 50% retracement of the 2021/2022 fall at 1.0944. This should prove a tough barrier for now, but an eventual weekly close above here should see a move back to the 1.1035 current YTD high and eventually what we look to be tougher resistance at 1.1185/1.1275.”