EUR/USD: Pullbacks cannot be ruled out - Natixis

Micaella Feldstein, Research Analyst at Natixis, explains that as the daily stochastic is overbought for EUR/USD pair, they cannot rule out further pullback in the very ST to 1.08-1.0820 (9 day moving average) even to the supports at 1.0707 (daily Bollinger moving average).

Key Quotes

“These dips are seen as corrective and shouldn’t affect the upside bias in place since the end of December 16. The emergence of an upside bubble on the daily chart, the increase in the weekly volatility and the bullish weekly indicators indeed suggest strong upside potential and plead for another test of 1.0940-1.0952 (monthly Bollinger moving average). The break of these levels would underpin bullish momentum, flagging 1.0985-1.10 (9-quarter moving average), 1.1130 and 1.1220.”