EUR headed lower – BBH

Analysts at BBH note that the euro is moving lower after it finished last week just below $1.19 and tested $1.1730 in the European morning.  

Key Quotes

“It is near a three-week low. Some pressure is coming from the cross against sterling, which the single currency was sold briefly through GBP0.8700 for the first time in six months.  There is a roughly 540 bln euro option struck at $1.1750 expiring today.”

“Earlier this week, the euro fell through the uptrend line from last month, and then mid-week fell below the 38.2% retracement of the November rally (~$1.1805).  Today, the euro was sold through the 50% retracement (~$1.1760) level.  The 61.8% retracement is found near $1.1710 and corresponds to the low from November 21.”