(Bloomberg) -- The euro may weaken to a one-month low against the dollar should the 16-nation currency drop below so-called support at $1.3070, BNP Paribas SA said, citing trading patterns. Buying of the euro may emerge at $1.3070 as that level is on a descending trend line that connects the lows of March 30 and April 10 and 17, based on data compiled by Bloomberg. Support is a level where buy orders may be clustered.“The currency pair is attempting to break $1.3070,” Claude Mattern, a technical analyst at BNP Paribas in Paris, wrote in a research note today. “A fall below that level would argue for a return toward $1.2990.”
The euro fell to $1.3084 as of 9:16 a.m. in London from $1.3186 in New York yesterday. The currency earlier declined to $1.3068, the weakest level since March 18. The $1.2990 level represents the low reached on March 18, based on Bloomberg data.“The daily indicators are around their zero level, with a light bearish bias,” Mattern wrote, citing momentum charts.The moving average convergence/divergence chart shows a sell signal for the euro against the dollar, according to Bloomberg data. MACD charts can indicate whether a price shift is a change in trend or a short-term deviation by comparing moving average s based on nine-, 12- and 26-day periods. In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index. Support is where buy orders may be clustered.
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