CS stays bearish and short as the “neckline” to the recent breakdown and the 38.2% retracement barrier at 1.1062/67 is capping to keep the trend still lower.
“Support moves to 1.0868/65 initially, below which can see a move back to 1.0818/15, with a break here needed to see further weakness to 78.6% retracement support at 1.0674 next, ahead of testing the low end of the former range at 1.0660/28,” CS projects.
“We would expect an initial hold here. Direct extension through can target 1.0521 next, ahead of the lows back in March at 1.0458,” CS adds. In line with this view, CS maintains a short EUR/USD position from 1.0955, with a stop at 1.1067, and a target at 1.0625.