The EUR/USD may see further short term consolidation above 2017 and last year lows at 1.0350/41. Nevertheless, Credit Suisse economists expect an eventual break below here.
Strength moderates at 1.0588/1.0615
“EUR/USD has now fallen to very key price support from 2017 and year lows at 1.0350/41. Our bias is for further consolidation above that level in the coming days before an eventual breakout, which would trigger further weakness in our opinion, with support seen next at 1.0217/09 and eventually parity/0.99.”
“Key short-term resistance lies at 1.0489, above which it would confirm that the bottom of the range has held for now to reinforce our bias for further consolidation.”
“Only a close above the 55-day MAP at 1.0588/0615 would raise the prospect of a longer consolidation phase and deeper recovery and open the door for a test of the key May/June highs at 1.0774/88 .”
Source: Fx Street