21 Jan 2016
EUR/USD: A false break? - BBH
FXStreet (Córdoba) - According to analysts from Brown Brother Harriman, today’s Draghi press conference moved the EUR/USD to the downside, but it is not clear if it will remain lower or if it is a false breakout.
Key Quotes:
“ECB President Draghi has sent the euro back down into the lower end of the recent range as he gave a strong signal that additional action could be delivered as early as March, the next meeting. The euro had approached the upper end of its range yesterday and now is slipping through $1.08.”
“There have been a few false breaks (moves outside the range that have not been sustained). A trendline drawn off the early December low (~$1.0525) and the low from earlier this month (~$1.0710) comes in today just below $1.08. Given the volatility of the global asset markets and growing conviction that the Fed will not lift rates in March makes us wary of another false break.”
Key Quotes:
“ECB President Draghi has sent the euro back down into the lower end of the recent range as he gave a strong signal that additional action could be delivered as early as March, the next meeting. The euro had approached the upper end of its range yesterday and now is slipping through $1.08.”
“There have been a few false breaks (moves outside the range that have not been sustained). A trendline drawn off the early December low (~$1.0525) and the low from earlier this month (~$1.0710) comes in today just below $1.08. Given the volatility of the global asset markets and growing conviction that the Fed will not lift rates in March makes us wary of another false break.”