Wednesday, October 28, 2009

TA Citigroup: Sell Euro as Support Breaks

(Bloomberg) -- The euro will decline to the lowest level in three weeks versus the dollar after breaching a support level at $1.4845, according to Citigroup Inc. “A firm breach” of the level, where buy orders are clustered, would “open the way for a move down” to the 55-day moving average at $1.4578, technical analysts Tom Fitzpatrick and Shyam Devani wrote in a research note today.

The euro posted an “aggressive bearish daily reversal” against the dollar yesterday, suggesting a “deeper correction down” in the next few days, according to the note. Such patterns occur when a security rises above the prior day’s high at the start of trading, and ends the day lower than the previous low.Citigroup advised clients to sell the euro at $1.4815. Investors should take off the bets if the euro rises above $1.4890, the analysts wrote.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aA2wTR0WfNEI

No comments:

Post a Comment

Kalender Ekonomi & Event


Live Economic Calendar Powered by Forexpros - The Leading Financial Portal