The euro may drop against the dollar to a level last reached in August if it fails to rally past resistance levels, according to Citigroup Inc.
The euro is facing a “bearish setup” versus the greenback, with a large gap between the 55- and 200-day moving averages, Citigroup’s Tom Fitzpatrick and Aron Gera in New York and Shyam Devani in London wrote in a note to clients today, citing momentum indicators.
“Overall, we continue to expect a test of the 200-day moving average, which is now at $1.4118,” the analysts wrote. That would be a drop of more than 4 percent from yesterday’s close of $1.4704.
Investors should watch the resistance levels at $1.48, then a “double-top neckline” at $1.4827 and the 55-day moving average at $1.4854, according to Citigroup....MORE
EUR/USD $1.5052. The spot U.S. Dollar index is at 74.45, up about 1/10% on the day.Dollar Sliding Into New Trading Range
Definitely in the running for 'Headline of the Day', from Mineweb...
From MarketBeat:The euro hit a fresh high for 2009 at $1.5144 as selloff in the greenback took another big jump in New York afternoon trading....Making this pronouncement from a week ago look a bit silly:I don't have anything concrete I can point to but 1.50 EUR/USD almost feels as if someone has drawn a line in the sand. As more and more money piles into the trade without movement past that line you start to lose the mo-mo traders and the psychology can shift fast.It's either one of those "I may be in error but never in doubt" statements a rookie would never refer back to or it's a Maxwell Smart moment: "Missed it by thissss much".
If the buck were to turn and head back to say, 1.20, the results for equities and gold would be painful.
I'm just sayin'...
[or it's like spring '08 when you said $1.53 and we went to $1.59 in July -ed]
I'm leaning toward Humble Student of the Markets' interpretation...