The euro posted a key reversal on February 16 and there has been follow-through selling over the past week, with lower highs were recorded every day, explains Marc Chandler, Global Head of Currency Strategy at BBH. 

Key Quotes

“The euro closed January near $1.2415.  Without a recovery, for which the technical indicators suggest is unlikely, the euro will snap a three-month advance.  Given the carry, it becomes expensive to hold the euro without momentum.  The eurozone reports its preliminary estimate of February CPI in the middle of this week, but with the political risk ahead of the Italian vote and the SPD on another grand coalition in Germany, participants may be more inclined to peel back long positions.”