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2 Apr 2013
Forex Flash: March was second consecutive month that Euro fell - BBH
FXstreet.com (Barcelona) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman notes that March was the second consecutive month that the Euro declined.
The $1.2750 offers initial support and some option barriers are believed to have been struck there. He sees the next downside target is at $1.2680, which corresponds to a retracement objective of the euro's rally sparked by ECB Draghi's comments in late July 2012. He writes, “We remain concerned that from a technical perspective the euro is stretched. The new four month lows were not confirmed by the RSI. Perhaps the 5-day moving average may offer some guidance. The euro has finished the North American session above it only four times in March after six times in February, and only once for two consecutive sessions (back in the middle of February). In addition, we note that euro has not closed above its 20-day moving average since Feb 13. It will come in just above $1.2940 on Monday and is falling more than 10 pips a day.”
The $1.2750 offers initial support and some option barriers are believed to have been struck there. He sees the next downside target is at $1.2680, which corresponds to a retracement objective of the euro's rally sparked by ECB Draghi's comments in late July 2012. He writes, “We remain concerned that from a technical perspective the euro is stretched. The new four month lows were not confirmed by the RSI. Perhaps the 5-day moving average may offer some guidance. The euro has finished the North American session above it only four times in March after six times in February, and only once for two consecutive sessions (back in the middle of February). In addition, we note that euro has not closed above its 20-day moving average since Feb 13. It will come in just above $1.2940 on Monday and is falling more than 10 pips a day.”