EUR/USD to extend its rally to 1.0892/1.0944 – Credit Suisse

EUR/USD hovers around mid-1.06s. Economists at Credit Suisse expect the pair to see further gains toward 1.0892/1.0944.

Further strength in Q1 2023

“We expect further strength in Q1 2023, reinforced by the large top in front-end US/Europe interest rate differentials.”

“We maintain our existing bullish call for 1.0892/1.0944 – the 50% retracement of the 2021/2022 fall and broken trend resistance from early 2017, with this then ideally capping to define the top of a broad range. Should strength directly extend though, we would see resistance next at 1.1185, potentially 1.1275.”

“Support to define the lower end of a potential range is seen at 1.0223/1.0198.”