EUR/USD risk stays seen lower for a test of the lower end of its five-month channel, analysts at Credit Suisse report.

Move above 1.0906 is now needed to warn of strength back

“EUR/USD maintains its decisive rejection from the top of the shallow uptrend channel from the beginning of January and with support from the 55-DMA removed as looked for this should confirm a more important downturn. We thus stay tactically negative looking for a fall to support next at 1.0729/14 and eventually the lower end of the channel, now at 1.0550.”

“Above 1.0906 is now needed to warn of strength back to retest 1.1097/1.1107, but with a fresh cap expected here.”