EUR/USD: Deterioration in the short-term technical configuration - Natixis

The pullback below 1.1843 for EUR/USD pair led to a sharp deterioration in the short-term technical configuration, with the development of a downward bubble in the daily chart, according to analysts at Natixis.

Key Quotes

“Under these conditions, rebounds should remain limited over the next few trading sessions. Watch out rather for a new decline of the pair towards 1.17141.1725 (around the high set on 15 August), the last obstacle before the support levels around 1.1594-1.16 (weekly Bollinger moving average).”

“The utmost caution will be in order, as a break below these last levels would affect the ascending channel still in evidence in the weekly chart, opening the way for a more pronounced downward correction over the next few weeks towards 1.1480-1.15, possibly towards 1.1240 (9-month moving average).”

“Resistance levels are located around 1.1843-1.1860, at 1.1909, around 1.1985-1.20, at 1.2032 and at 1.2094.”