Trading EURUSD technically – Major Banks

20 November,, London – As everyone talks about monetary policy divergence between the Fed and ECB ,and the December key events for EURUSD, the technical FX teams at Credit Suisse and JP Morgan have provided their insights and strategies in the near future for trading EURUSD technically.

Credit Suisse

Although a small base formation completed above 1.0690 warns of a near-term bounce, Credit Suisse retains bearish view towards 1.0521 and then the 1.0458 year to date lows.

Nevertheless, if we would see any EURUSD rallies, they be seen as corrective and ideally the 1.0830 level would be expected to cap any further price upticks.

“Support shows at 1.0692/90 initially, then 1.0672, below which should see a move back to the 1.0617 recent low, ahead of 1.0521 and then the 1.0458 low for the year,” Credit Suisse projects.

Thereafter resistances’ shifts to the 13 day moving average and 1.0774 – 1.0778 area, where EUR strength should ideally fail.

Credit Suisse shorts EURUSD from 1.0770, with a stop placed at 1.0834, and targeting a move lower towards 1.0500 level.

JP Morgan

JP Morgan warns that a temporary bounce reaching as high as 1.0953 is still possible.

Although the overall picture remains negative, the market remains trading within the decisive support area between 1.0757 (int. 76.4 %) and 1.0596 (using a 1.5 % filter) levels, leaving the door for a rebound open.

“The latter could extend to 1.0953 (int. 38.2 %) which can be seen as the decisive T-junction where a 4th wave top would form in case the downtrend towards 1.0485/62 (wave 3 projection/int. 76.4 %) would still be intact,” JP Morgan projects.

On the other hand, a break below 1.0596 support level would challenge the year to date lows at 1.0485 – 1.0462 zone, thereafter parity zone at 1.0072 (76.4 %) would become in focus.

Bottom line, as EURUSD remains trading within the decisive support area JP Morgans currently stays neutral.

Consider reading: Caution on EURUSD, levels and targets

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