EURUSD: Technical pattern has deteriorated markedly - Natixis

Micaella Feldstein, Research Analyst at Natixis, suggests that the EURUSD’s  technical pattern has deteriorated markedly after the break below 1.0662-1.0670 (weekly Bollinger lower band and lower band of the downside channel- may 16/nov 16) and with the emergence of downside parallels on the daily chart.

Key Quotes

“The emergence of a downside bubble on the weekly data also suggests further downside potential.”

“Against this backdrop, caution remains in order as a new leg lower in the coming days to 1.0523 (level tested in dec 2015 ahead of a strong rally) ahead of 1.0445-1.0460 (2015 low) sounds highly likely. The break below these last levels would lead to 1.0365 (semi-annual Bollinger lower band). The resistances stand at 1.0662, at 1.0845, at 1.0938 and at 1.1060.”