Forex Flash: Euro looks vulnerable on two grounds - BBH

FXstreet.com (Barcelona) - According to Marc Chandler, Global Head of Currency Strategy at BBH, technical factors favor a dollar bounce scenario this week, with the euro looking vulnerable on two grounds, he says.

Mr. Chandler notes: "First, there is bearish divergence in the daily (14-bar) relative strength index. This means that the indicator did not confirm the strength of the price action. Second, the dominant short-term chart pattern is a potential double top, with the failure to move above the $1.34 area in the second half of the week. The neckline of the double top comes in near $1.3255. A convincing break is needed to confirm the pattern and project around to around $1.31.

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