Euro May Fall Below $1.25 on Ichimoku: Technical Analysis
This article is for subscribers only.
The euro’s drop in the past month has pushed the currency through key levels on a so-called ichimoku chart, indicating its decline may continue to $1.25 next year, Bank of America Merrill Lynch said, citing trading patterns.
The common currency reached a nine-month high of $1.4282 on Nov. 4, climbing from $1.1877 on June 7, the lowest level since March 2006. The currency broke below the bottom of an ichimoku cloud chart at the $1.3374 level, and its shorter-term conversion line crossed below its longer-term baseline. It also fell below $1.3080, which represents a 50 percent Fibonacci retracement of a rally from June to November.