EUR/USD set to break below support at 1.0350/41 for a fall to parity – Credit Suisse

A choppy session has seen EUR/USD fall to retest and again hold for now the YTD and 2017 lows at 1.0350/41. Economists at Credit Suisse continue to look for an eventual break below here for a fall to parity.

Initial resistance aligns at 1.0470

“Whilst we see scope for further consolidation above the YTD and 2017 lows at 1.0350/41, our core bias stays negative for an eventual clear and sustained break lower. We would expect this to then act as the catalyst for a resumption of the core downtrend with support seen next at 1.0281 then 1.0217/09, which we look to hold at first.”

“Big picture, we maintain our core negative outlook for an eventual sustained break lower for an eventual fall 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 exponential average at 1.0554, which we look to prove tougher resistance.” 

“A sustained close above the 55-day average at 1.0672 is needed to warn of a potentially more important low.”