EUR: Bounces from the $1.05 level appear to be getting more shallow - BBH

Euro bounces from the $1.05 level appear to be getting more shallow as technical indicators are not particularly helpful given the sharp swings in both directions in recent days, notes Research Team at BBH. 

Key Quotes

“That said, the euro's squeeze up to almost $1.0875 likely completed the upside correction we had been anticipating.  We expect the $1.05 support area yield, with the euro heading toward $1.0430-$1.0450 before corrective pressure emerges again.  If the $1.05 is not broken, momentum traders will be sorely disappointed, and a bounce back to $1.07 would not surprise.”