Credit Suisse Research discusses EUR/USD technical outlook and adopts a bearish bias for a retest of 1.0927/06 ahead of a potential move towards 1.0815.
"The risk stays seen lower following the rejection of the 38.2% retracement of its fall from late June and downtrend. Further consolidation above the 78.6% retracement of the September bounce at 1.0966 should be allowed for but we look for a move below here in due course for a fall back to the current cycle low and trend support from August 2018 at 1.0927/06, where we would expect to see renewed buying," CS notes.
"Our broader bias stays lower for an eventual move below here to resolve the range of the past month to the downside to see the core bear trend resume, opening the door to a move back to more meaningful support at 1.0815 – the 78.6% retracement of the 2017/2018 rally – where we would look for a fresh floor.
Only above 1.1111/13 though would suggest a base has been established," CS adds.