EUR/USD set to retest and break under recent low at 1.0806 – Credit Suisse

EUR/USD looks to be coming under pressure again. The current expected consolidation stays seen as temporary ahead of a retest and eventual break of the recent low at 1.0806, analysts at Credit Suisse report.

Consolidation stays seen as temporary

“We remain of the view that the current consolidation is temporary ahead of the broader trend turning lower again. Near-term support is seen at 1.0950, ahead of 1.09, 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 here should be allowed for, we continue to look for a sustained break lower in due course.”

“Below 1.0806, we see support next at 1.0775/66, ahead of 1.0727 and eventually the 2020 low itself at 1.0635.” 

“Above 1.1070/72 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.”