EUR/USD: The pair must drop below 1.0580 for a top to form (Credit Suisse)

In a technical analysis issued by Credit Suisse, the bank notes that the EUR/USD should fall below 1.0580 to form a short-term top.

"The EUR/USD had a volatile start to the week, and a major sell-off to test support at 1.0623/19, which holds for now, and indeed a strong rebound has been observed. Its break is necessary to expose the pivot at 1.0589/80. The break of this last threshold is necessary to form a top and return towards a downward trend in the direction of 1.0454, before the January trough at 1.0341.

The first resistance level is at 1.0740, and a break above 1.0775 is necessary to target our turnaround target at 1.0821/28."