Euro May Decline to $1.2190, Commerzbank's Jones Says: Technical Analysis
The euro may decline to $1.2190 should it fall below a key support level against the dollar, Commerzbank AG said, citing technical indicators.
“Our focus is on the $1.2588 recent low,” Karen Jones, head of fixed-income, commodity and currency technical analysis at Commerzbank in London, wrote in an e-mailed report today. “This is now exposed. Below here targets the $1.2523/$1.2490 zone, which represents the mid-July low and the June peak. Targets remain $1.2433 en route to $1.2190.”
The euro fell 0.2 percent to $1.2692 as of 9:10 a.m. in London.
“Resistance lies at $1.2920/25, the highs since mid- August, and while capped here, the market will remain under pressure,” Jones wrote.
A support level is an area on a chart where technical analysts anticipate orders to buy a currency and its related instruments. The stronger the support, the more selling is needed to drop below that level.
A resistance level is an area on a chart where technical analysts anticipate orders to sell a currency and its related instruments. The stronger the resistance, the more buying is needed to advance through that level.