How low for EUR/USD? After tumbling to its lowest level in more than five years, analysts at Credit Suisse expect the world’s most popular currency pair to extend its slide towards the 1.0485/1.0341 zone.

Direct break below 1.0341 to open up parity

“Below the 1.0635 low of 2020, we see potential channel support from the 2016 high at 1.0485 next, then the 1.0341 low of 2017. Our bias, for now, would be to look for a low in this 1.0485/1.0341 zone.”

“A direct break below 1.0341 would warn of a further acceleration in the downtrend, with support seen next at the 78.6% retracement of the entire 2000/2008 bull trend and psychological floor at 1.00/0.99. Big picture, we suspect this is where EUR/USD weakness eventually extends to.”