Flash: EUR/USD vulnerable to test 1.2850 this week - BBH

FXstreet.com (Barcelona) - The tepid attempts by the EUR/USD to recover ground late last week, were overshadowed by a two hour-imperial selling at the 1.31 mark, taking the rate to exchange hands back at 1.30 by Friday's NY close.

Prices in the EUR/USD through interbank trading are steady now, around 1.3006, with sellers still in overall control of the market, as clearly reflected by the last selling episode, where a 2-hour red candle managed to erase 45 hours of buying.

Marc Chandler, Global Head of Currency Strategy at BBH, notes how the EUR/USD closed below the 200-day average (~$1.3075) for the third consecutive session, adding that "This area will likely contain upticks now." Chandler expects the euro "to test the trend line drawn off the early April and mid-May lows, which comes in near $1.2850 at the end of next week."