EUR: Shallow pullback? - BBH
In the middle of last week, the euro climbed to approach the $1.1860-$1.1885 area, which corresponds with retracement objectives and that area marks the October high that was also part of a larger topping pattern, points out the research team at BBH.
“Following the mid-week reversal (shooting star candlestick) the euro had a shallow pullback, finding support at near the five-day moving average, which it has not closed below since November 8. A move below that moving average (~$1.1765) could be among the first signs to confirm a near-term high is in place. The upper Bollinger Band is near $1.1835. The US two-year premium continuing to trend higher against Germany, which was not the case during the late April through early September euro rally, and this makes us hesitant about getting enamored with the euro.”