Credit Suisse and UBS turned to small EUR/USD longs as the pair remain comfortably above the 1.37 level aiming for an imminent break of the 1.38 level.
“EURUSD has extended its recovery up through key resistance at 1.3735/37 – the late January high and 61.8% retracement of the December/January decline. This has established a better base and should allow further strength to 1.3820 initially, ahead of the medium-term downtrend from the 2008 peak and 2013 high at 1.3847/93, which we would look to cap,” CS outlines its bullish bias on the pair.
“Should strength extend, we would target 1.4248. Support moves to 1.3725 initially, with 1.3694/92 ideally holding to keep the immediate risk higher. Below can ease the immediate upside bias for a retreat back to 1.3657/5,” CS adds.
In line with this view, CS maintains a long EUR/USD position as a trade recommendation with a stop below 1.3650, and a target at 1.3820.
For UBS, they prefer be long intraday with a stop at 1.3700-25 ahead of FOMC, for a break of 1.3800.