EUR/USD headed to 1.1300? – BBH

By FXStreet Analysts at Brown Brothers Harriman explained that the reversal of the US dollar’s gains half way through Draghi’s press conference has undermined the near-term technical tone.

Key Quotes:

“The risk is on the downside, at least in the first part of the week, ahead of the FOMC meeting.

The US Dollar Index posted an outside down session on March 10. It drove the five-day moving average through the 20-day average, and turned the RSI and MACDs. Follow through selling ahead of the weekend was limited, but a break of 96.00 suggests potential toward year low set on February 11 near 95.25. Below there, last October’s low near 93.80 comes into view. A move above 97.00 would help being repairing the technical damage.

Provided the euro holds above the $1.1040-$1.1060 area, it has potential toward $1.1300. That objective is the measuring target of the potential head and shoulder pattern the euro has traced prior to the ECB meeting. The euro’s initial sell-off may obscured the pattern for purists, after all the euro briefly, albeit marginally, fell through the head of the pattern (~$1.0825 on March 2). However, and admittedly it is subjective and discretionary, we …read more

Source:: FX Street