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4 Mar 2013
Forex Flash: Euro continues slide - BBH
Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman notes that the Euro´s month long side is carrying into March.
He notes that the currency broke below $1.30 for the first time since Mid-December and while momentum indicators are getting stretched, there is not divergence. He writes, “Our next target is near $1.2880, the 50% retracement of the gains scored after ECB's Draghi promised to do whatever it took (within his mandate, broadly interpreted). The 200-day moving average is a bit lower, near $1.2840. A break there signals a move toward $1.2700. On the upside, the $1.3070-$1.3100 should now offer resistance.”
He notes that the currency broke below $1.30 for the first time since Mid-December and while momentum indicators are getting stretched, there is not divergence. He writes, “Our next target is near $1.2880, the 50% retracement of the gains scored after ECB's Draghi promised to do whatever it took (within his mandate, broadly interpreted). The 200-day moving average is a bit lower, near $1.2840. A break there signals a move toward $1.2700. On the upside, the $1.3070-$1.3100 should now offer resistance.”