EUR: 1.26 is the key number - BBH

Analysts at BBH suggest that 1.26 is a key area for the euro. 

Key Quotes

“There are two important technical levels.  First, it is the last major retracement objective of the euro's down move that began in mid-2014.  Second, it is where a downtrend from the record high (2008 ~$1.60) is to be found.”

“A convincing move above there would likely spur action by some of the structural long dollar positions.  Technically, a move to $1.32-$1.35 would seem likely, if not a bit higher.  The OECD's PPP model puts fair value near $1.33.”

“Speculators in the futures market have already begun taking liquidating long euro positions.  The week ending February 13 was the third in a row that the gross long position was trimmed.  The gross shorts eased 7k to about 103.5k, they have been fairly steady in a narrow around 100k.”