EUR/USD set to suffer a substantial drop to the 2020 low at 1.0635 – Credit Suisse

EUR/USD has found a floor at 1.0825. Whilst economists at Credit Suisse continue to look for this to hold for a consolidation phase, the broader risk stays seen lower for an eventual break to expose the 1.0635 low of 2020.

EUR/USD to see to see further temporary consolidation above 1.0825

“We continue to look for 1.0825, the long-term uptrend from early 2017, to hold for now for some consolidation, ideally in a 1.0825/1.1120 range.”

“Big picture, we stay bearish for a clear break in due course for a test of the 2020 low at 1.0635.”

“Above 1.1120/21 can see a deeper recovery, but with tougher resistance still expected at 1.1275.”