Support for EURUSD is holding but it’s just a matter of time before it eventually breaks lower, according to David Sneddon and his team at Credit Suisse in London.
Sneddon says EURUSD appears to be in the middle of a triangle continuation pattern (see Chart) and that although it has managed to defend support at 1.0524/21 (from December 2015), he favours an eventual break lower to test the 2015 low at 1.0458.
Beyond this, while he expects the 1.0458 level to hold for a while, Sneddon thinks it will eventually break lower again thus resuming the core downtrend and targeting 1.0199/96, and possibly a move towards parity and lower.
Immediate resistance is at 1.0600 with 1.0644/66 needed to form a base for 1.0742/60. Their strategy is to short EURUSD at 1.0620 (and to add below 1.0455), with a target of 1.0200 and stop above 1.0685.