Market news

4 June 2021

EUR/USD: Scope for a substantial drop to the 200-DMA at 1.1985 - Credit Suisse

FXStreet reports that the Credit Suisse analyst team notes that EUR/USD has set a top below key support at 1.2134/25 to warn of further weakness to 1.2053/51 – potentially the 200-day moving average (DMA) at 1.1985.

“EUR/USD weakness has accelerated sharply, reinforced by poor daily RSI and MACD momentum and key support from the recent low and 23.6% retracement of the March/May uptrend at 1.2134/25 has been removed to set a near-term top. We look for this to clear the way for further weakness within the broader sideways range for a fall to 1.2053/51 – the mid-May low and 38.2% retracement of the rally from late March.” 

“Whilst we look for the 1.2053/51 zone to hold at first, we now see scope for a move below here to the 55-day average at 1.2025, potentially the 200-day average and ‘measured top objective’ in the 1.2000/1.1985 zone, but with our bias to then look for a floor here.” 

“Resistance moves to 1.2135 initially, above which can see a move back to 1.2163, but with this ideally capping for now."

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

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