Economists at Credit Suisse continue to look for EUR/USD to hold below retracement resistance at 1.0998 for a test of its uptrend from last September at 1.0778
EUR/USD is in the process of constructing a major top
EUR/USD has capped the 78.6% retracement of 2022/2023 to 1.0998, which is now a near-term downtrend position and 10-year US/Germany bond yields have seen a large base formation process in what we believe will be a major top in EUR/USD. may be in process.
We take a negative bias looking for a fall back to the low of last week at 1.0835 initially, then a test of the uptrend from last September at 1.0778/74. A break below this latter area is needed to add weight to a topping story for a test of the 1.0732 next, then the 1.0634 May low.
Resistance is seen at 1.0934/43 initially, with 1.0998 ideally capping on a closing basis.
