Both euro/dollar and dollar/yen have gone against the favor of the US dollar in recent trade.
The team at Credit Suisse sees here opportunities to take the other side, and provide clear entry points:
Here is their view, courtesy of eFXnews:
EUR/USD came within a whisker of the 1.2358 recent low on Monday, which attracted some near-term buying, notes Credit Suisse.
“However, we ideally look for price and 21-day average resistance at 1.2502/08 to cap to keep the immediate trend lower,” CS argues.
“Removal of 1.2358 would target 1.2295/89 next, ahead of the bottom end of the medium-term range at 1.2224, where we would look for fresh buying to emerge. Should weakness directly extend, this should see a challenge on the 1.2042 pivotal low of 2012,” CS projects.
Near-term resistance, according to CS moves back towards 1.2502/08 and beyond here can see a deeper recovery towards the 1.2600 pivot high.
In line with this view, CS runs a limit order to sell EUR/USD at 1.2500 targeting 1.2225.
In USD/JPY, CS notes that it remains well-supported above key price support at 117.09/02.
“This keeps the immediate risk topside for strength towards 118.59 initially, above which should see strength back to 118.98, followed by 119.78/83 and then our core target from the 61.8% retracement of the 1998/2011 decline at 120.00/10,” CS argues.
In line with this view, CS runs a limit order to buy USD/JPY at 117.10 targeting 119.50.
For lots more FX trades from major banks, sign up to eFXplus
By signing up to eFXplus via the link above, you are directly supporting Forex Crunch.