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20 May 2013
Flash: What does the EUR/USD have to offer? – BBH and Westpac
FXstreet.com (Barcelona) - The single currency is advancing against its American counterpart at the beginning of the trading week, hovering around 1.2865/70 as the risk aversion seems to be taking a breather.
“A large head and shoulders pattern is being carved out. The neckline is seen near the late March and early April lows around $1.2740… The measuring objective of the head and shoulders pattern would carry the single currency below $1.20, our year-end target”, suggested the BBH Global Currency Strategy Team.
In opinion of Sean Callow, Strategist at Westpac, “European news flow should remain a weight on EUR crosses but our broad USD view should limit EUR/USD downside near term to the mid-1.27s that have proven to be good support since Nov12”.
“A large head and shoulders pattern is being carved out. The neckline is seen near the late March and early April lows around $1.2740… The measuring objective of the head and shoulders pattern would carry the single currency below $1.20, our year-end target”, suggested the BBH Global Currency Strategy Team.
In opinion of Sean Callow, Strategist at Westpac, “European news flow should remain a weight on EUR crosses but our broad USD view should limit EUR/USD downside near term to the mid-1.27s that have proven to be good support since Nov12”.