EUR/USD: 55-DMA at 1.0786 to prevent further upside – Credit Suisse

EUR/USD has reversed from a major support level at the 2017 low at 1.0350/41. Economists at Credit Suisse look for a deeper corrective recovery to the 55-day moving average (DMA) at 1.0787. 

Move to parity now looks likely to occur later on in the year

“We look for the 55-DMA at 1.0786 to hold to prevent further upside and thereafter, we look for further ranging. Post this phase, we look for an eventual move back to 1.0341 first, with a break below here paving the way to reach parity later on in the year.”

“Above 1.0786, resistance is seen at 1.0841 and then at 1.0904/36, which we look to cap to avoid an even lengthier corrective recovery.”