EUR/USD: Below 1.1697 confirms a top with support at 1.1590 – Credit Suisse

EUR/USD has closed below key support from its 55-day average at 1.1737 and importantly has also removed its August lows at 1.1710/1.1697 and this finally sees a top established to mark a more significant move lower and a fall to 1.1495/85, analysts at Credit Suisse brief.

Key quotes

“EUR/USD has maintained the weak tone seen on Monday and has not only closed below key support from its 55-day but has also importantly removed support from the August lows at 1.1710/1.1697. This finally sees a top established to mark a more significant move lower with support seen initially at 1.1637/27, then the 50% retracement of the rally from June at 1.1590.” 

“More important support and our objective remains seen at 1.1495/85 – the 38.2% retracement of the entire rally from March, 61.8% retracement of the rally from June and point -of – breakout from the medium-term base. We would then look for a fresh floor here for an attempt to resume the broader uptrend.” 

“Resistance moves to 1.1717/19 initially, then the 55-day average at 1.1737, with the immediate risk seen staying lower whilst below 1.1776/98. A break would throw a question mark over the top, with resistance next at 1.1827.”