EUR/USD has fallen sharply for a clear break below the 1.0806 recent low and uptrend from 2017. Analysts at Credit Suisse look for a test of the 2020 low at 1.0635.

Resistance at 1.0934 to cap

“The rapid sell-off has already seen support from the April 2020 low at 1.0727 removed and we stay directly negative for the ‘measured wedge objective’ seen at 1.0675/74 and eventually the 2020 low at 1.0635. Whilst we would look for signs of a better floor here, a direct break would warn of a yet further and significant break lower with support then seen next at the April 2017 low at 1.0579, then 1.0496/93.”

“Resistance is seen initially at 1.0758/60, then the 13-day exponential average and price resistance at 1.0836/59, which we look to now try and cap. A break can see a recovery back to 1.0934/33, but only a break above here would mark the completion of a near-term base to clear the way for a recovery back to 1.1034/40.”