EUR: Uncertainty to prevail? - BBH

The euro snapped a five-day advance ahead of the weekend and it initially made new highs since late 2014 but proceeded to sell off through the previous day's low, notes the research team at BBH. 

Key Quotes

“It also closed below the previous days low to trace out a key reversal. The RSI and MACDs did not confirm the high, leaving a potential bearish divergence in its wake.  The Slow Stochastics, on the other hand, are turning up.   Although short-term traders have been conditioned to buy the euro on dips, the lower end of the range is still at a couple cents lower (~$1.22). Initial support may be seen near $1.2340.  On the upside, the 61.8% retracement of the euro's decline from the 2014 high is found near $1.26 and the monthly downtrend line is near $1.2640.”