Forex Flash: EUR/USD next down side target is 1.2680 – BBH

FXstreet.com (Barcelona) - With EUR/USD still above the 1.28 handle amid current Italy uncertainty in the political field, Global Head of Currency Strategy at Brown Brothers Harriman Marc Chandler notes: “The next down side target is $1.2680, which corresponds to a retracement objective of the euro's rally sparked by ECB Draghi's comments in late July 2012,” the analyst says, adding: “We remain concerned that from a technical perspective the euro is stretched. The new four month lows were not confirmed by the RSI. Perhaps the 5-day moving average may offer some guidance,” he adds.

“The euro has finished the North American session above it only four times in March after six times in February,” and only once for two consecutive sessions (back in the middle of February),” Marc points out, expanding: “In addition, we note that euro has not closed above its 20-day moving average since Feb 13. It will come in just above $1.2940 on Monday and is falling more than 10 pips a day,” he concludes.