EUR/USD trades in a potential bull flag with resistance seen at 1.1232 – Credit Suisse

EUR/USD remains under pressure, navigating the area just above 1.1200. Nevertheless, analysts at Credit Suisse believe the market is now forming into a potential bull ‘flag’ pattern with a break of the 1.1232 resistance to reinforce the bullish view.

Key quotes

“We believe the market may be trading in a potential bullish ‘flag’ pattern, which are short sharp countermoves which clear out prior positioning, eventually allowing the uptrend to reassert itself. Our core bias therefore stays higher, with short-term resistance first seen at 1.1232, above which would turn the short term risks back higher. Thereafter, an eventual move above 1.1339/69 would trigger the pattern, with next resistances at 1.1423, before the important 1.1495 high.”

“Key support now moves to 1.1190, then 1.1169/54. A break below here would still be very much consistent with a potential ‘flag’ and would actually reinforce its potential potency by further cleansing long positioning, with only a move below 1.1133/22 negating this potential pattern.”