EUR/USD: Return above the 1.1848-1.1858 area sounds unlikely - Natixis

Micaella Feldstein, Research Analyst at Natixis, suggests that even though they cannot rule out a new round of rallies for EUR/USD pair, a return above the 1.1848-1.1858 area (daily Bollinger upper band) sounds unlikely.

Key Quotes

“The weak daily volatility should indeed prevent the cross from rallying too much and we rather see a decline to important supports at 1.1693-1.1705 (weekly Bollinger moving average).”

“Caution will be in order as a break below these thresholds would affect the upside parallels still in place on the weekly chart, providing fresh bearish momentum to 1.1619-1.1630 (May 16 high), to 1.1480-1.15 and even to 1.1350 (9-month moving average). The resistances are at 1.1788-1.1805, at 1.1848-1.1858, at 1.1882-1.1896, at 1.1956 and at 1.2070.”