EUR/USD: Eventual break of the 1.0341 low of 2017 remains expected for a fall to parity

EUR/USD has seen a further sharp fall for a test of the 1.0341 low of 2017. Whilst economists at Credit Suisse look for some near-term consolidation here, the pair is set to break below this mark in due course for a move to parity.

Resistance at 1.0530 to cap on a closing basis 

“We continue to look for the 1.0341 low of 2017 to hold at first for some consolidation, but big picture, our base case remains for a move below here to reinforce the bear trend even further, with support then seen next at 1.0217/09 and eventually parity/0.9900, which is also the 78.6% retracement of the 2000/2008 bull trend. Our bias would then be for this to act as a much better floor for a potentially lengthier phase of consolidation. Should weakness directly extend though, we see support next at 0.9609.” 

“Near-term resistance moves to 1.0420, above which can ease the immediate downside bias for a recovery back to 1.0471, with the 13-day exponential average at 1.0530 ideally capping on a closing basis further strength.”