The euro is poised to climb to the highest in a month against the dollar after it failed to break below a key level of so-called support last week, Credit Suisse Group AG said, citing trading patterns.
Europe’s shared currency may strengthen toward $1.3172 after holding above its 200-day moving average of $1.2826, technical strategists including London-based Cilline Bain wrote in a note to clients today.
“We continue to be bullish and look for support at $1.2826 to hold firm,” the strategists wrote. “We see risk skewed higher through $1.3011 and $1.3074 to re-test the $1.3172/78 zone,” they said.
The euro was little changed at $1.2960 at 10:19 a.m. London time. It touched the 200-day moving average of $1.2826 on Oct. 11, according to data compiled by Bloomberg. It reached $1.3172 on Sept. 17, the highest level since May 4, the data showed.
In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security, commodity, currency or index. Support refers to a level where orders to buy a security may be clustered.
Editors: Keith Jenkins, Nicholas Reynolds