A hectic session has seen the EUR/USD drop to retest and hold for now at year and 2017 lows at 1.0350/41. Credit Suisse economists they continue to look for an eventual break below here for a drop to parity.
Initial resistance lines up at 1.0470
“Although we see room for further consolidation above the 2017 and last year lows at 1.0350/41, our main bias remains negative for an eventual clear and sustained break to the downside. We would expect this to act as a catalyst for a resumption of the main downtrend with support seen next at 1.0281 and then 1.0217/09, which we look to hold first.”
“Broadly speaking, we maintain our negative view of the core for an eventual sustained break lower for an eventual drop to parity/0.99.”
“Resistance is seen at 1.0470 initially, with a break above 1.0508 needed to clear the way for a recovery back to the 13-day EMA at 1.0554, which we expect to be tougher resistance.”
“A sustained close above the 55-day MAP at 1.0672 is needed to warn of a potentially more important bottom.”
Source: Fx Street
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