02 May, AtoZForex, London – For the start of the week, Credit Suisse has shared with us its technical analysis for EURUSD and AUDUSD for currency traders to acknowledge. The following is AUDUSD & EURUSD technical analysis.
EURUSD technical analysis
EURUSD has been trapped in a broad range since the base formation in March 2015.
For now, “our bias is for price and retracement resistance at 1.1495 to ideally cap – the October 2015 and April 2016 highs and 78.6% retracement of the August/December decline – with a break below 1.1144/06 needed to mark a fresh top in the range, for a slide back to 1.0883/22 initially,” Credit Suisse noted.
Above 1.1495 level would suggest that EUR strength could extend further to the 1.1714 August 2015 high, and more likely to 1.1808, the 38.2% retracement of the 2014/2015 collapse.
Having a multi-year top in place Credit Suisse remains of the view that the current EURUSD range will eventually be resolved to the downside. Resulting in a move to the investment’s bank parity target, but there is a clear risk that we could yet see further ranging first, or even a deeper recovery.
AUDUSD technical analysis
Moving on to AUDUSD, Credit Suisse notes that the broader risk for the Aussie is seen for a move lower while capped beneath a resistance at 0.7691 level.
Source: Credit Suisse research, AUDUSD & EURUSD technical analysis
Support levels are located at 0.7594 and then at 0.7548. A break beneath the latter level is needed to open targets towards the following trend-line and 55 day average combination at 0.7530 – 0.7500 area.
“We would expect fresh buying to show here but below it can see weakness extend for 0.7477, ahead of 0.7415/10,” Credit Suisse added.
Immediate resistance level is at 0.7691, which needs to cap any bullish upticks to maintain the downside bias. A break above the resistance level could ease the downside risk for a move further towards 0.7767/75.
In line with this view, Credit Suisse maintains a short AUDUSD position from 0.7660 level, with a stop placed at 0.7695 level, and a target located at 0.7520.
Also see: Morgan Stanley weekly Forex outlook
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