The greenback continues rising and two currencies have drawn the attention of Credit Suisse: EUR and AUD.
Here are the technical setups:
Here is their view, courtesy of eFXnews:
Starting with EUR/USD, CS notes that the bearish “outside” break below the 1.1066/52 “breakout” zone turns the broader trend lower again.
“We look for further weakness here to test the 55-day average at 1.0918 at first, through which can aim at the 61.8% retracement level at 1.0849/43, followed by the low end of the former range at 1.0660/14,” CS projects.
“Near-term resistance moves to 1.1062, then 1.1101 with price and “neckline” resistance at 1.1208/48 expected to cap to keep the trend lower. Strategy: Flat. Sell at 1.1060, stop above 1.1248 for 1.0525,” CS adds
In line with this view, CS runs a limit order to sell EUR/USD at 1.1060, with a target at 1.0525.
Turning to AUD/USD, CS notes that the immediate focus turns towards a cluster of supports at .7790/74, notes Credit Suisse.
“AUDUSD has reversed its early gains, completing a bearish “outside” session to weigh on a cluster of supports at .7790/74 – the early May low, 61.8% retracement and 55-day average support – where we would expect fresh buying to show here,” CS projects.
“A direct break lower though can trigger further selling for .7683 initially, followed by a stronger support from the range lows at .7555/33. Near-term resistance moves lower to .7861/67, followed by .7936. Above can target .7976/86 and then .8030/63 which we look to ideally cap,” CS adds.
In line with this view, CS runs a limit order to sell AUD/USD at 0.7855, targeting a move to 0.7605.
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