EUR/USD is coming under downside pressure again. A break below 1.09 is expected to clear the way for a retest and eventual break of the recent low at 1.0825/06, analysts at Credit Suisse report.
Resistance is seen at 1.1039/52
“We remain of the view that the current consolidation is temporary ahead of the broader trend turning lower again. We thus look for a test of 1.0900, below which should clear the way for a retest of uptrend support from early 2017 low and the recent low at 1.0825/06.
“Whilst a fresh hold at 1.0825/06 should be allowed for, we continue to look for a sustained break lower in due course. Below 1.0806 and we see support next at 1.0775/66, ahead of 1.0727 and eventually the 2020 low itself at 1.0635.”
“Near-term resistance moves to 1.0997. Above the recent highs and downtrend from February at 1.1039/52 is needed to ease the immediate downside bias for strength back to 1.1120 and then the recent high and Fibonacci retracement at 1.1138/45, potentially as far as 1.1275, but with fresh sellers expected here.”