The euro may fall to a three-week low against the dollar after dropping below its 200-day moving average today, ING Groep NV said, citing trading patterns.
The 17-nation currency is poised to extend losses to $1.27 within the next two weeks as it approaches its 50-day moving average at $1.2581, Roelof-Jan Van den Akker, a technical analyst in Amsterdam, wrote today in a note to clients.
“The weakening trend is still intact and it is quite normal to see a hesitation around the 200-day moving average,” Van den Akker said in an interview, confirming the contents of the report. “We expect more selling pressure on the euro.”
The euro gained 0.2 percent to $1.2888 at 12:52 p.m. London time after falling as much as 0.4 percent to $1.2804, below the 200-day moving average at $1.2824. The last time the single currency traded at $1.27 was on Sept. 7.
In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security, commodity, currency or index.
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