The euro may decline to a seven-month low versus the pound upon a close below 86.37 pence, Citigroup Inc. said in a report citing technical patterns.
The euro fell 1.2 percent as of 2:38 p.m. in New York to 86.77 pence, or 0.8677 pound, descending below the currency pair’s 200-day moving average at 86.80.
“The key support level is 0.8637 which was the low from February 2009 and is the double-top neckline,” Citigroup chief technical analyst Tom Fitzpatrick in New York and strategist Shyam Devani in London wrote in a research report today. “A close below there, preferably a weekly close, would suggest a trend lower toward 0.7750.”
A double-top pattern is formed by two peaks in a price graph and the neckline is an area of support, or level where orders to buy may be clustered. A decline below a support level indicates demand to sell exceeds buying and that the trend lower may continue.
From Bloomberg News.
The euro fell 1.2 percent as of 2:38 p.m. in New York to 86.77 pence, or 0.8677 pound, descending below the currency pair’s 200-day moving average at 86.80.
“The key support level is 0.8637 which was the low from February 2009 and is the double-top neckline,” Citigroup chief technical analyst Tom Fitzpatrick in New York and strategist Shyam Devani in London wrote in a research report today. “A close below there, preferably a weekly close, would suggest a trend lower toward 0.7750.”
A double-top pattern is formed by two peaks in a price graph and the neckline is an area of support, or level where orders to buy may be clustered. A decline below a support level indicates demand to sell exceeds buying and that the trend lower may continue.
From Bloomberg News.