EUR/USD has reinforced its defense of key support from the 1.0341 low of 2017. With daily MACD holding having turned higher, analysts at Credit Suisse remain of the view a near-term base is forming, with a break above 1.0642 needed to confirm.

1.0465/60 needs to hold to maintain an immediate upside bias

“With daily MACD momentum holding a bullish divergence and having turned higher, we remain of the view a near-term base is forming.” 

“Near-term resistance is seen at the accelerated downtrend at 1.0608 ahead of the 23.6% retracement of the fall from February and May high at 1.0620/42. Above here is needed to confirm a near-term base has been completed to provide the platform for a deeper recovery to the 38.2% retracement, 55-day average and mid-April lows at 1.0758/94. We expect a much tougher barrier here if tested.” 

“Support is seen at 1.0508 initially, with 1.0465/60 now needing to hold to maintain an immediate upside bias. A break can clear the way for a retest of 1.0350/41.”

This article was originally published by Fxstreet.com.Read the original article here.

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