EUR/USD to resume the downtrend towards the 1.1019/02 area – Credit Suisse

EUR/USD has seen a clear break of support at 1.1272. Economists at Credit Suisse view the corrective phase from late November as now over and look for a resumption of the core downtrend to the 1.1019/02 region.

Resistance is seen moving to 1.1244 initially

“With daily MACD momentum having turned lower again, we maintain our view that the corrective phase is over and core downtrend resumed.”

“We look for a retest of the lows of last November and June/July 2020 at 1.1186/68. We look for this support to now be ideally removed with ease with support then seen next at 1.1046 ahead of our 1.1019/02 main objective – the 78.6% retracement of the 2020/2021 bull trend and top of the base from April/May 2020. We would then look for a fresh phase of consolidation to develop from here.” 

“Resistance is seen moving to 1.1244 initially, then 1.1263, with the immediate risk now seen staying directly lower below 1.1299/1.1312.”