Euro May Decline 4% If Support Broken, Citigroup Says: Technical Analysis
Headlines
- Article
- Comments
- About Bloomberg.com
Bloomberg.com | September 8 2010 3:22 EDT
The euro may drop 4 percent to a level against the dollar last reached in July if a support level is breached, according to Citigroup Inc.
The 16-nation currency fell earlier today to the lowest level in September on concern some European governments are struggling to overcome the region’s sovereign-debt crisis. The euro appreciated after improved demand at auctions of Portuguese and Polish bonds.
“There is still another move down coming on the euro,” Tom Fitzpatrick, chief technical analyst at Citigroup in New York, said in a research note to clients. “The euro has come under renewed pressure in the short term as a result of focus again on European banks and sovereign spreads.”
If the euro falls below the support level of $1.2588, it could drop as low as $1.22, according to Fitzpatrick. That level was last touched on July 1. Resistance for the euro can be found at $1.2923, he wrote.
The euro climbed 0.5 percent today to $1.2745 at 10:32 a.m. in New York, from $1.2682 yesterday. It earlier fell to $1.2659, the lowest level since Aug. 31. The support level of $1.2588 cited by Fitzpatrick was last touched on Aug. 24.
In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index.
Resistance is an area on technical charts where orders to sell may be clustered, while support is where buy orders may be clustered. The stronger the support, the more selling is needed to drop below that level.
Company : Bloomberg
Website : http://www.Bloomberg.com
About :
In 1981 Bloomberg started out with one core belief: that bringing transparency to capital markets through access to information could increase capital flows, produce economic growth and jobs, and significantly reduce the cost of doing business. Today’s Bloomberg builds on that foundation - everything we do connects decision makers in business, finance and government to a broad and dynamic network of information, news, people and ideas that enables faster, more effective decisions.
-
February 10 12 1:30 GMT
Obama Adjusts Birth Control Rule after Catholic Resistance -
February 6 12 2:48 GMT
L.A Elementary School is Closed Amid Probe for “Sex Abuse”
-
January 10 12 9:33 GMT
Forex Market Movers Summary 1/10/2012 -
January 5 12 10:13 GMT
Forex Market Movers Summary 1-5-2012
-
February 8 12 5:39 GMT
Cisco Systems Surprised Analyst Earnings Estimates -
December 30 11 4:28 GMT
Stocks End Day, Year Mostly Flat to Close Volatile 2011
-
February 9 12 10:45 GMT
Greek Leaders Grabbed its Austerity Package -
January 30 12 5:32 GMT
Federal Birth Control Mandate Meets Catholic Moral Resistance
Euro (EUR)
Japanese Yen (JPY)
Sterling (GBP)
Swiss Franc (CHF)
Canadian Dollar (CAD)
Australian Dollar (AUD)
Global Economic Calendar
Currency Converter
Glossary
Currency Codes
Global Statistics Resources
CPI Avg. Price Calculator
CPI Inflation Calculator
CIA World FactBook
Pivot Point Calculator