EUR/USD has been decisively capped below the 55-day moving average (DMA) at 1.1182/85. However, a break below 1.0944 is needed to reassert the downward pressure, economists at Credit Suisse report.

55-DMA at 1.1182/85 to cap on a closing basis 

“We are biased toward further sideways consolidation in the short-term, with the broader downtrend still in place following the cap below the falling 55-DMA at 1.1182/85. With this in mind, a break below 1.0944 is needed to mark an important turn lower again, with next supports at 1.0900, then crucial medium-term support at 1.0825/0806, which is the confirmed uptrend from the January 2017 low. A break below here would open up a move to the 2018 low at 1.0635.”

“We are concerned about the loss of short and medium-term momentum, however, only a close above 1.1182/85 would provide the first real sign that we may have seen a more important low at our 1.0825 core objective.”