EUR/USD: Rally in the making - Natixis

According to Micaella Feldstein, Research Analyst at Natixis, the break of 1.0660 (weekly Bollinger moving average) for EUR/USD pair has lessened the risks of a pullback to the 1.05 region and paves the way for a more pronounced rally over the coming days.

Key Quotes

“The emergence of an upside bubble on the daily chart and the turnaround of the weekly stochastic also adds weight to this bullish view.”

“It is consequently likely that EURUSD will eye the resistances at 1.08-1.0820 (Fibonacci extensions) whose clearance would clear the way to 1.08631.0880 (9-month moving average) ahead of 1.09501.0970 (weekly Bollinger upper band). The supports stand at 1.0660-1.0672, at 1.06, at 1.0570 and at 1.05-1.0520.”