A close above its 55-day moving average would confirm the uptrend has resumed for EURUSD, says David Sneddon and his team at Credit Suisse in London.
Sneddon points out that EURUSD has rejected the 1.1881/86 level, which is the high of October and the 61.8% retracement of the September to November decline, but the recent move higher back above its 55-day moving average, at 1.1792, suggests the broader uptrend has resumed (see Chart). However, EURUSD needs to close above 1.1792 to add weight to this view.
Resistance can be found at 1.1828/29 initially, then 1.1861 and 1.1881/86. Sneddon says a clean break above 1.1881/86 would reassert the bull trend for a 1.1977 target, then 1.2034 and the September high at 1.2092.
On the downside, Sneddon says support can be found at 1.1785, 1.1759/57, 1.1744/38 and then strong basing support at 1.1691.