### POV: EUR SET FOR NEW HIGHS - A risk........>

EURO: ### POV: EUR SET FOR NEW HIGHS

- A risk positive environment, renewed bullish momentum and supportive investor

sentiment point to EURUSD heading to new highs. A move above the 1.2555 peak

would likely put the focus on the 1.2750 area.

- After the EUR's best start to a year in its history with gains of 3.41%

against the USD in January, February's 1.77% pullback looks increasingly like a

correction.

- The EURUSD pullback from February's 1.2555 high to the March 1st 1.2155 low

coincides with the 38.2% retracement level of the rally from the 1.1554 November

low, consistent with a correction in the broader uptrend.

- The EUR is the best performing major currency of the past week, and while

short term positioning indicators appear stretched, longer term investor

sentiment is more moderate.

- The latest I&PE Expectations Indicator of investors shows net sentiment

towards the EUR moving from deeply bearish to neutral, implying further upside

potential for the EUR. However, Thursday's ECB meeting is a risk factor.