EUR/USD: Sustained break of the April low at 1.0770/68 to expose the 1.0635 low – Credit Suisse

EUR/USD weakness is showing signs of accelerating and analysts at Credit Suisse look for a sustained break of the long-term uptrend and April low at 1.0770/68 to expose the 1.0635 low.

Key quotes

“We continue to look for a sustained break to see the long-term uptrend break as well as confirm the completion of a bearish ‘triangle’ continuation pattern, to suggest a more sustained downmove is underway.”

“Below the 78.6% retracement of the late March rally at 1.0745 should further reinforce the rally to expose the year-to-date low at 1.0635.” 

“Resistance moves to 1.0770/75 initially, then 1.0819, with yesterday’s high and the 13-day average at 1.0847/53 now ideally capping to keep the immediate risk lower.”