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18 Feb 2013
Forex Flash: EUR/USD, break of trendline sees scope for 1-2 cent decline - BBH
From a technical point of view, according to Mark Chandler, Global Head of Currency Strategy at BBH, "it appears additional near-term losses in EUR/USD are likely."
Marc adds: "The 5-day moving average has crossed below the 20-day moving average. The similar trendline that the Dollar Index closed above comes in near $1.3280 in the euro and rises to $1.3320 by the end of the week. A convincing violation suggests scope for addition 1-2 cent decline. On the other hand, the trend line drawn off the early Jan high is near $1.3440 on Monday and falls toward $1.3350 by the end of the week. A move above this trend line will help stabilize the technical tone."
Marc adds: "The 5-day moving average has crossed below the 20-day moving average. The similar trendline that the Dollar Index closed above comes in near $1.3280 in the euro and rises to $1.3320 by the end of the week. A convincing violation suggests scope for addition 1-2 cent decline. On the other hand, the trend line drawn off the early Jan high is near $1.3440 on Monday and falls toward $1.3350 by the end of the week. A move above this trend line will help stabilize the technical tone."