EUR/USD consolidation stays seen as temporary ahead of an eventual sustained break below the 2017 and YTD lows at 1.0350/41, in the view of economists at Credit Suisse.

Further consolidation looks likely

“EUR/USD extends its consolidation but remains capped below its recent high at 1.0601. With more important price resistance and the falling 55-day average seen not far above at 1.0621/27 our bias remains for a cap here and for a fresh turn lower and an eventual resumption of the broader downtrend.” 

“Support moves to 1.0512 initially, then 1.0469, below which should see the risk turn lower again for a retest of key price support from the YTD and 2017 lows at 1.0350/41. We continue to look for eventual break below here, which should act as the catalyst for a resumption of the core downtrend, with support seen next at 1.0217/09 and eventually parity/0.99.”