EUR/USD to eventually see a fresh leg lower to 0.9331, potentially 0.9000/0.8905 – Credit Suisse

EUR/USD is expected to see consolidation around 0.9606/9592. However, the pair is expected to resume its decline towards 0.9331/03 and potentially under the 0.90 level, economists at Credit Suisse report.

EUR/USD points to a potential consolidation phase

“A lengthier consolidation/pause is expected, but our view remains to view such a phase as temporary only and we maintain our core and long-held bearish view for a sustained move below 0.9592 in due course.”

“Resistance is seen at 1.0000/1.0051 which we look to try and cap the recovery. Above the 1.0198 September high though is needed to raise the prospect of a deeper but still corrective rally and lengthier consolidation, with resistance seen next at 1.0341/69.”

“Post a consolidation phase, we look for an eventual sustained move below 0.9592 in due course with support then seen next at 0.9331/03, and potentially as far as Fibonacci projection support at 0.9000/0.8905.”