EUR/USD has reached the resistance zone at 1.0770/0835. Analysts at Credit Suisse look for a turn back lower from here, for a move to 1.0608/0599 initially, then 1.0350/41 and eventually beyond.

Resistance at 1.0835 expected to cap

“EUR/USD is still capped at 1.0770/0835. With five different resistances in this zone, we expect this area to act as a very tough barrier and we look for the medium-term downtrend to reassert itself from here.”

“Support stays at 1.0642, below which would now confirm a very small intraday ‘wedge top’ to confirm that the risks have turned lower again, with next support at 1.0608/0599, with scope then for a retest of 1.0350/41. Ultimately, we look for an eventual fall to parity/0.99, with the market still in a clear medium-term downtrend.”

“Above 1.0835 is not our base case, however, it would trigger a deeper-than-expected recovery, with the next level at 1.0923/37.”