EUR/USD: technical analysis suggests a rally towards the 1.1750/1.1800 range (BBH)

In its technical analysisn BBH notes that the EUR/USD is on its way to test the 1.1750 / 1.1800 area.

"We believe that the 50% retracement of the EUR/USD rally that started at the beginning of the year, coming in around 1.1450, is out of reach at the moment, and that the EUR/USD is heading towards 1.1750/1.1800.

The 20-day moving average is moving in the middle of this range, and the euro has not risen above since 20 April.

The Stochastic indicator has not scored a new low again to confirm the low prices, leaving room for divergence. MACDs are also turning upward. And the EUR/USD has ended a six-week series of declines."