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15 Apr 2013
Forex Flash: Euro upside remains intact - BBH
FXstreet.com (Barcelona) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman believes that the Euro´s upside correction remains intact.
He feels that a convincing move above the $1.3115-20 area will signal the start of the next leg up that is worth at least another cent and maybe 2. Ideally, the euro holds above the $1.3020 area, but it may require a break of $1.30 to undermine the correction. Looking to Sterling, he notes that it had a poor close before the weekend, but inside Thursday's range. He writes, “Sterling's advance has stalled just in front of the resistance we identified near $1.5425. If the bullish flag pattern is to remain intact, sterling should not see much in follow through losses. If these materialize, sterling may have to slip back toward $1.52 to test support.”
He feels that a convincing move above the $1.3115-20 area will signal the start of the next leg up that is worth at least another cent and maybe 2. Ideally, the euro holds above the $1.3020 area, but it may require a break of $1.30 to undermine the correction. Looking to Sterling, he notes that it had a poor close before the weekend, but inside Thursday's range. He writes, “Sterling's advance has stalled just in front of the resistance we identified near $1.5425. If the bullish flag pattern is to remain intact, sterling should not see much in follow through losses. If these materialize, sterling may have to slip back toward $1.52 to test support.”