The euro may fall in the coming days to $1.2464, its 200-hour moving average, according to Australia & New Zealand Banking Group Ltd. (ANZ), citing trading patterns.
The 17-nation euro may be poised for a downward “correction” after failing to rise to $1.2667 yesterday, said Alex Sinton, director for institutional foreign exchange at ANZ Bank. That is near the euro’s 38.2 percent retracement from its May 1 high of $1.3284 to the June 1 low of $1.2288 on the Fibonacci chart, according to data compiled by Bloomberg.
“With the euro correcting from the recent spike up, I would expect it to fall further,” said Sinton. “The corrective move I would have liked to have seen in the recent rally would have been around $1.2667. We didn’t see it as far as that. The euro might peter out at the moment and fall.”
The euro slid 0.3 percent to $1.2524 as of 6:27 a.m. in London from yesterday, when it touched $1.2625, matching the highest since May 23. The shared currency is poised for a 0.7 percent advance since June 1.
In technical analysis, investors and analysts study charts of trading patterns to forecast changes in a security, commodity, currency or index. Fibonacci analysis is based on the theory that prices rise or fall by certain percentages after reaching a new high or low.
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