EUR/USD has fallen sharply after its break below key price support from the YTD and 2017 lows at 1.0350/41. Analysts at Credit Suisse look for this to clear the way for a fall to parity/0.99, where another phase of consolidation is expected.

The 1.0341/66 price barrier ideally caps further strength

“We stay directly negative with support below 1.0073 seen next at 1.0060/50 ahead of parity/0.99, which we look to ideally be achieved within a 2-4 week time horizon. Thereafter, our bias would be for another consolidation/recovery phase to emerge, similar to the one we saw in May/June.”

“Immediate resistance is seen moving to 1.0185/92, above which can ease the immediate downside bias for a recovery back to resistance next at 1.027/77, with the 1.0341/66 price barrier ideally capping further strength.”