EUR/USD: Rebounds should remain limited over the next few trading sessions - Natixis

The analysis team at Natixis shares its technical assessment of the EUR/USD pair, with key quotes found below:

"The pullback below 1.1843 led to a sharp deterioration in the short-term technical configuration, with the development of a downward bubble in the daily chart. Under these conditions, rebounds should remain limited over the next few trading sessions. Watch out rather for a new decline of the pair towards 1.1714-1.1725 (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. Break below 1.1843 is very bearish, opening the way for a further decline towards 1.1714-1.1725, the last obstacles before the support levels around 1.1594-1.16"