Trend resistance continues to cap EURUSD’s move upwards, according to David Sneddon and his team at Credit Suisse in London.
Sneddon points out that EURUSD has been capped below key trend resistance from August 2015 (today at 1.1453) and this, together with overbought momentum levels, suggests a near-term top may be close (see Chart).
Sneddon says support can be found at 1.1379, then 1.1346 (the 13-day moving average) and then key support at 1.1312/1.1292. He thinks removal of this last level would complete a small top to target 1.1220.
Conversely, Sneddon thinks that if EURUSD can break above 1.1453 it can go on to target the 1.1617 May peak, and then the 38.2% retracement of the 2014 to 2016 fall and August 2015 high at 1.1712/36, where he expects a stronger barrier.