EUR/USD weakness has accelerated sharply over the past week, breaking key support at 1.1495/93. Next notable support is also seen nearby at 1.1310/1.1290, where economists at Credit Suisse expect a temporary pause. However, they expect to see further weakness towards 1.1020/00.

Resistance moves to 1.1513 initially

“EUR/USD is falling sharply again and has broken with ease below its next key support and our first objective at the March 2020 high and 50% retracement of the 2020/2021 uptrend at 1.1495/93. This already leaves the market on the cusp of our next key support/objective of the 61.8% retracement and Fibonacci projection support at 1.1310/1.1290.”

“Our bias remains for 1.1290 to hold at first for a phase of consolidation, but with a major ‘head and shoulders’ top in place, we continue to look for an eventual break in due course and a fall to 1.1020/00.”

“Resistance moves to 1.1513 initially, with 1.0609/18 now ideally capping.”