Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Euro May Fall Toward $1.2585, SocGen Says: Technical Analysis

Dec. 6 (Bloomberg) -- The euro may drop as low as $1.2585 against the dollar after it failed to break above a key resistance area, Societe Generale SA said, citing technical indicators.

“The $1.3445/1.3450 pullback area forced euro-dollar to turn lower, confirming the short-term risk is to the downside,” technical analysts Hugues Naka and Fabien Manac’h in Paris wrote in a research note today. “A dip back to last week’s low at $1.2970 remains the most likely scenario.”

The euro dropped 0.9 percent to $1.3288 at 2:51 p.m. in London. It reached $1.2969 on Nov. 30, according to Bloomberg data.

“A break below this low and then below the $1.2920 pullback level would call for a dip to the $1.2585/90 region before euro-dollar attempts to head north again,” they wrote. That compares with the $1.2588 low from Aug. 24, according to Bloomberg data.

In technical analysis, investors and analysts study charts of trading patterns to forecast changes in a security, commodity, currency or index. Support is where buy orders may be grouped, and resistance is a level where sell orders may be clustered.

To contact the reporter on this story: Keith Jenkins in London at Kjenkins3@bloomberg.net

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.