EUR/USD: technically, the downside has legs to 1.2135 - BBH

Analysts at Brown Brothers Harriman explained that the euro's seven-week rally ended with a 1.8% decline.  

Key Quotes:

"The losses weakened the technical tone. Technical support in the $1.2220-$1.2230 area was frayed, though the downside momentum appeared to slow.  

The balance of power appears to have shifted and the euro needs to resurface above the $1.2300-$1.2330 area for the bulls to regain the whip hand.  

The five-day average broke below the 20-day average for the first time since last December 21.  

The technical indicators suggest the downside move may have legs, and the next target is in the $1.2135-$1.2150 area."