Euro May Test Two-Week Pound Low, RBC Says: Technical Analysis
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The euro may fall to its lowest level against the pound in two weeks as it breaks into a retracement phase after its recent high, according to the Royal Bank of Canada.
The 17-nation currency will target a level between 84.74 pence and 83.99 pence per euro, the 38.2 percent and 50 percent Fibonacci retracements of the Feb. 1 high of 87.17, George Davis, chief technical analyst for fixed-income and currency strategy at RBC in Toronto, wrote yesterday in a note to clients. The shared currency, which has strengthened 6.8 percent versus the pound during the past three months, will find support at the 61.8 percent retracement level of 83.24.