EUR/USD needs to go lower before it goes higher
Bank of America Merrill Lynch FX Technical Strategy Research notes that EUR/USD rally keeps showing signs of exhaustion around current levels.
"The seven month rally has surpassed a long term Fibonacci level (38.2% 1.1743) and is the most overbought in a very long time.
Tactically we think EURUSD should at least consolidate at this 200wk SMA, if not correct to test some support levels.
The long discussed 1.15 level may be what EURUSD needs to test before it can resume it strong uptrend into the 1.20's, such as 1.2172," BofAML argues.