EUR/USD gains north of 1.1250 unlikely – BBH

In opinion of analysts at BBH, further gains above the mid-1.1200s appear unlikely for the time being.

Key Quotes

“The euro recovered from the midweek low of nearly $1.1120 to $1.1250 after the US employment data”.

“The $1.1260 area corresponds to a 61.8% retracement of the Yellen-Fischer spurred decline. At $1.1245, the euro retraced 50% of the decline since the August high near $1.1365”.

“With reasonable prospects of ECB action and still lingering ideas that the employment data is sufficient for the FOMC, participants may be hesitant about pushing the euro much above that $1.1250 area”.

“The $1.1100-1.1150 band may cushion losses. The 200-day moving average is found in the middle of that band. A break of $1.11 could set up a test on the August low by $1.1045”.