Via Bloomberg:
The euro may re-test a four-year low versus the dollar after failing to rebound on a so-called double bottom trading pattern, according to FXPrime Corp.
“The failure to rebound after forming a double bottom blew off positive technical signals for the currency,” he said. “The euro is likely to resume a downtrend and re-test a 50 percent Fibonacci retracement line from a historical high.”
The euro made two troughs of about the same depth on May 19 and May 27 in a so-called double-bottom pattern, before breaking through those levels on June 1 to drop to $1.2111, the lowest level since April 2006. The currency’s 50 percent retracement is at $1.2134, based on the low of 82.30 U.S. cents in October 2000 and its record high of $1.6038 in July 2008.
My view: As long a bad news keeps coming out of Europe, the euro will keep declining. Investors should not rely heavily on support levels for the euro.
Daniel A.
Summer Analyst
Analyze Capital LLC
email:analyzecapital@gmail.com
Short and to the point! Are their any support levels in particular you see shattering?
ReplyDeleteDan, what feasible good news do you think will help the Euro to bounce back?
ReplyDelete