The broad uptrend for EURUSD may be resuming, according to David Sneddon and his team at Credit Suisse in London.
Sneddon says that EURUSD’s recent strength has removed resistance at 1.1827/38 – the late September high and 38.2% retracement of the September to October decline – to prod above the “neckline” at 1.1867. This, he argues, increases the chance that the corrective setback is over and the broader uptrend has resumed (see Chart).
Sneddon is now looking for a move to 1.1895/97, before approaching trend resistance at 1.1913/18. If EURUSD can reach 1.1938 this would confirm a resumption of the broader uptrend in Sneddon’s opinion for a target of 1.2005, then 1.2034, then back to the September high at 1.2092.
Support can initially be found at 1.1840/34 and then 1.1795, below which Sneddon says the upside risk would dissipate and lead to a target of 1.1717 and then 1.1669/62.
As such, Sneddon’s strategy is currently flat, though he would aim to buy a dip to 1.1815/05 for a target of 1.2165, with a stop below 1.1760.