EUR/USD needs to hold support at 1.0905/1.0833 to suggest weakness is corrective – Credit Suisse

EUR/USD has corrected sharply lower. Economists at Credit Suisse analyze the pair’s technical outlook.

Below 1.0833, weakness can extend further yet to test the 200-DMA at 1.0714

There is scope for further weakness yet to the 1.0905/1.0833 support cluster – the rising 55-DMA, uptrend from last September and early July lows. This needs to hold to suggest weakness is corrective ahead of strength back to 1.1152 and then a retest of 1.1275/77. An eventual break above here can see resistance next at 1.1391/96 ahead of 1.1495 and eventually 1.1703/1.1748 – the March 2021 low and 78.6% retracement of the 2021/2022 fall. 

Below 1.0833 though would neutralise our current tactical view and suggest weakness can extend further yet to test the 200-DMA, currently at 1.0714, where we would expect fresh buyers to show.