EUR/USD to accelerate its fall towards the 1.1290 mark – Credit Suisse

EUR/USD saw a dramatic fall on Wednesday, breaking below the key support zone at 1.1495/93 – the March 2020 high and 50% retracement of the 2020/2021 bull trend. This should trigger a resumption of the core downtrend, with next short-term support at 1.1370, with scope for 1.1290 over the medium-term, in the view of economists at Credit Suisse.

Resistance moves lower to 1.1513/24

“EUR/USD has finally broken decisively below major support at 1.1495/93, which significantly reinforces our core bearish view. This breakdown itself came on the back of a rejection from key resistance from its falling 55-day average (and downtrend from June) at 1.1670/95, with a major top also remaining in place, which is still the key technical feature. Furthermore, short-term momentum is re-accelerating.”

“We look for a resumption of the core downtrend, with the next minor support seen at 1.1377/70, before the 61.8% retracement at 1.1300/1.1290, where we would expect to see another pause.”

“Near-term resistance moves to 1.1513/24, which ideally caps to keep the market biased directly lower. Next resistances are seen at 1.1609/18, then more importantly at 1.1670/95.”