EURUSD has established a top and will target 1.1662 and below, according to David Sneddon and his team at Credit Suisse in London.
Sneddon says the sell-off from the start of this week has removed key support from the late August low at 1.1823 to establish a top and signal the start of a more significant correction lower. He thinks EURUSD will first target the 38.2% retracement of the June to September rally at 1.1720 before going on to test the August low at 1.1662, which may hold for a while. Eventually though, Sneddon thinks a break through this level will see weakness extend to the measured target from the top at 1.1588 (see Chart).
Above, Sneddon says resistance can be found at 1.1811 then 1.1862, which he thinks is needed to ease the immediate downside risk, and then 1.1938, which would remove thoughts of a top more completely.