The EUR/USD decline has extended to the 200-day moving average at 1.0800. Credit Suisse economists analyze the outlook for the pair.
Resistance at 1.0932 limiting the rise
While 1.0800 holds for now as suspected, if our view for the USD is correct, this would suggest that the risk of a move below 1.0800 in due course is high for a test of what appears to be better support in the 38.2% retracement of the 2022/2023 uptrend and the May low at 1.0634/1.0612.
Although we would expect an attempt to find a better bottom at 1.0634/1.0612, if the weakness extended this would signal a larger reversal to the downside, with supports below at 1.0516, and then the 50% retracement at 1.0407.
Resistance at 1.0932 may limit immediate risk. Above 1.1066, however, the need to see a rejection at the top remains to reaffirm a sideways range.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
