FXStreet reports that economists at Credit Suisse see a resumption of the core downtrend in EUR/USD, with next short-term support at 1.1370, with scope for 1.1290 over the medium-term.
“EUR/USD has finally broken decisively below major support at 1.1495/93, which significantly reinforces our core bearish view. This breakdown itself came on the back of a rejection from key resistance from its falling 55-day average (and downtrend from June) at 1.1670/95, with a major top also remaining in place, which is still the key technical feature. Furthermore, short-term momentum is re-accelerating.”
“We look for a resumption of the core downtrend, with the next minor support seen at 1.1377/70, before the 61.8% retracement at 1.1300/1.1290, where we would expect to see another pause.”
“Near-term resistance moves to 1.1513/24, which ideally caps to keep the market biased directly lower.”