EUR/USD: a sustained bearish break would be required to confirm a top (BBH)

BBH indicates it has a bearish bias for the EUR/USD with a necessary technical break below 1.2155 to confirm a reversal.

"With the insistence of Draghi and Praet of the ECB on the continuity of patience (with the current monetary parameters), coupled with the downward revision of the February CPI (1.1% from 1.3% in January and an initial estimate of 1.2%), this has weighed on the euro during the last few sessions.

However, the EUR/USD is up one penny since the beginning of March. The trend line that we identified last week, drawn since the 2 February summit, held up during this week's test, which reinforces its significance. It is now evolving near 1.2345.

The technical indicators do not generate strong signals, but they seem to favour a further decline.

The 1.2250/1.2270 zone offers initial support, but a sustained break of the 1.2155 zone is needed to confirm a top."