EURUSD: Weakness persists - BBH

Analysts at BBH note that the euro fell about 0.5% against the dollar last week after falling about 1.35% the previous week and has only risen in three of the past ten sessions.  

Key Quotes

“It has been sufficient to push the five-day moving average back below the 20-day average for the first time since March 9.  The Slow Stochastics are trending lower, but are approaching zero.  The MACDs were turning lower at the end of last week and continued to ease.  The RSI is drifting lower.”

“The trend line connecting the January and March lows seen in the $1.0580, which is just above the lower Bollinger Band (~$1.0575), was teased ahead of the weekend.  A break would target $1.0500-$1.0525.  We had thought potential extended a little above $1.07 last week, but the euro did not get much above $1.0685, where we would now recognize resistance.  The euro's slump is consistent with the wider interest rate differentials as US yields edged higher and German yields eased.”