EUR/USD has confirmed a short-term bearish “wedge” continuation pattern following the break below 1.0944. Analysts at Credit Suisse look for a quick move lower.

Bear “wedge” continuation pattern suggests a quick move lower is likely

“EUR/USD has completed a relatively clear bearish ‘wedge’ continuation pattern following the break below 1.0944. These patterns typically lead to quick moves lower once confirmed and with this in mind, we look for a quick fall to crucial medium-term support at 1.0825/0806, which is the confirmed uptrend from the January 2017 low.” 

“A break below 1.0825/0806 would open up a move to the 2018 low at 1.0635, with the potential ‘measured wedge objective’ just above here at 1.0675/74.”

“Resistances at 1.0944 and 1.0989/1008 ideally cap to maintain the bearish ‘wedge’.”