EUR/USD to consolidate around 1.0485 ahead of further weakness – Credit Suisse

EUR/USD continues to hold long-term channel support at 1.0485. Still, the broader risk stays seen lower, economists at Credit Suisse report.

EUR/USD to suffer an eventual fall to parity

“Our bias is to look for a consolidation phase at the lower end of the broad potential downtrend channel from 2016 at 1.0485, but with this seen as a temporary pause only ahead of a resumption of the core downtrend in due course to test the 1.0341 low of 2016.” 

“Big picture, we look for an eventual fall to parity.”

“Resistance is seen at 1.0642 initially, above which can see a recovery back to 1.0760/1.0860, but with this ideally capping.”