6 Apr 2015
EUR/USD risks an upside break – BBH
FXStreet (Barcelona) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman, notes that the FX positioning and eurozone growth environment supports a EUR/USD break higher targeting 1.1265.
Key Quotes
“The euro has carved out a roughly $1.07-$1.1050 range. Given the positioning and the mounting evidence indicating that the eurozone growth surpassed the US in Q1 15, the risk is that the range breaks to the upside.”
“The technical indicators we look at are consistent with this view. We have suggested that an upside break would target $1.1265 and possibly at most $1.15.”
“A stronger euro in the current environment is likely consistent with lower implied volatility. We would peg initial support now for the euro near $1.09.”
Key Quotes
“The euro has carved out a roughly $1.07-$1.1050 range. Given the positioning and the mounting evidence indicating that the eurozone growth surpassed the US in Q1 15, the risk is that the range breaks to the upside.”
“The technical indicators we look at are consistent with this view. We have suggested that an upside break would target $1.1265 and possibly at most $1.15.”
“A stronger euro in the current environment is likely consistent with lower implied volatility. We would peg initial support now for the euro near $1.09.”