EUR/USD to see an eventual sustained break below 0.99 for a fall to 0.96 – Credit Suisse

Economists at Credit Suisse look for an eventual conclusive break of support at 0.9900 in EUR/USD for a fall to their 0.9609/0.9592 objective and likely lower in due course.

Initial resistance seen at 1.0090/97

“EUR/USD briefly flirted with a move below the 78.6% retracement of the 2000/2008 uptrend at .9900 this week and although this has not been sustained thus far our bias remains for an eventual conclusive break. This would then be seen to clear the way for a move to our 0.9609/0.9592 next objective.” 

“Whilst we would look for a fresh consolidation phase at 0.9609/0.9592, we see no reason not to look for a break below here in due course, with support seen next at 0.9330.

“Resistance stays seen at 1.0090/97 initially, with the 55-day average at 1.0185 ideally capping further strength if seen.”