EUR: Bearish divergence with technical indicators moving lower - BBH
|The euro's technical tone indicates a bearish divergence as technical indicators are moving lower even though at mid-week the euro made a marginal new high, explains the analysis team at BBH.
Key Quotes
“The five and 20-day moving averages crossed for the first time in nearly two months. Our lingering concern is that interest rate differentials, at the two- and ten-year spread has moved to the US. Arguably it is a function of disappointing US economic data (less consumption, subsiding price pressures, fewer inventories), and a backing up of eurozone interest rates, especially in Germany. A break of $1.1110 is needed to signal the morphing of the broadly sideways consolidation to an outright correction. On the upside, a move above the $1.1220 area may be seen as an early signal of a running start at the $1.13 cap.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.