EUR/USD: Support at 1.0825 holds ahead of further weakness to 2020 low of 1.0635 – Credit Suisse

EUR/USD has collapsed lower again for a move to 1.0825. Analysts at Credit Suisse continue to look for an attempt to try and hold here for a phase of consolidation. However, there is no reason to look for a sustained move below 1.0825 in due course to expose the 2020 low at 1.0635.

Support at 1.0825 to try and hold at first

“We continue to look for an attempt to try and hold at 1.0825 in the near term for a phase of consolidation. However, with the DXY having broken key resistance with ease and the EUR itself falling sharply in trade-weighted terms, we see no reason not to look for a sustained move below 1.0825 in due course.” 

“After 1.0825, we would then see support next at 1.0775/66 ahead of the April 2020 lows at 1.0727/22 and eventually the 2020 low itself at 1.0635.” 

“Near-term resistance moves to 1.0917, then 1.0940. Above this latter level can ease the immediate downside bias for strength back to 1.1009, potentially 1.1032/42, but with fresh sellers expected here.”