EUR: Market does not appear to have given up - BBH

Analysts at BBH explain that the euro recovered from its push toward $1.1925 yesterday to trade nearly $1.20 in Asia and although it has stalled there in early European turnover, the market does not appear to have given up.  

Key Quotes

“We suspect that it can push toward $1.2020 before some of yesterday's bottom pickers take some quick profits.  The next key technical objective we have noted is found near $1.2165, the 50% retracement of the euro's slide from the mid-2014 high.”  

“Technically, this suggests the euro's stronger than anticipated recovery this year is still well within the parameters one would expect in a correction, rather than a new trend.  Having talked with many people attending the TradeTech Europe FX conference in Barcelona, we remain struck with the extreme negativity to the dollar, with some participants suggesting potential toward $1.30-1.50.  The pessimism toward the US is palpable.  The possibility that Yellen gets reappointed, that the Fed raises rates again over the next 15 months, or that tax reform is delivered are all seen as extremely low.  We suspect the source of volatility will come from one or more of these events taking place.”