EUR/USD has broken below the 2020 low at 1.0635. However, analysts at Credit Suisse see scope for a short-term rebound from channel support at 1.0485.

EUR/USD to find a floor at first in the 1.0485/1.0341 zone 

“Our bias remains to try and look for a better floor to be found the lower end of the potential broad downtrend channel from 2016 and price support at 1.0496/85 at first and for a consolidation/recovery phase to emerge to unwind the oversold condition. Should weakness directly extend though, this would be seen to expose the 1.0341 low of 2017.”

“Big picture, we suspect the decline ultimately extends to the 78.6% retracement of the entire 2000/2008 bull trend and psychological floor at 1.00/0.99.” 

“Resistance is seen initially at 1.0573, with 1.0623/33 ideally capping to keep the immediate risk lower. Above 1.0656 though is needed to mark a near-term exhaustion point and a deeper recovery to 1.0739/60.”