Analysts at BBH note that the euro dropped from a little above $1.20 on September 22 to a low last week a just below $1.1720 and recovered ahead of the weekend, on the last trading day of the month and quarter.
“There is scope for additional near-term gains, perhaps spurred by the weekend press, much of which seems critical of the White Houses tax proposals for being sops for the wealthy and corporations. The disappointment over the unexpected decline in the core PCE deflator keeps investors skeptical about the scope for continued tightening next year.”
“In any event, the euro can recover into the $1.1860-$1.1890 area without jeopardizing out the negativity evident in the weekly bar charts, and signified by the end of the six-month advancing streak in September. We have noted the potential head and shoulders topping pattern, which projects toward $1.16, which is around the 20-week moving average. The mid-August lows were set a bit higher near $1.1660. The weekly Slow Stochastics have turned down, and the MACDs appear poised to cross lower. The weekly RSI is showing a bearish divergence by not confirming the recent highs in the euro.”
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.