Euro May Decline to Two-Year Low on Channel: Technical Analysis
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The euro may decline to a two-year low after it reaches the upper range of its so-called downward channel, Forecast Pte said, citing trading patterns.
The 17-nation currency is in the channel, which has a top line demarcated by highs of $1.4549 on Aug. 29, 2011 and $1.4247 on Oct. 27, said Pak Lai Ng, a Singapore-based technical analyst at Forecast. The bottom line of the channel runs through the low of $1.3146 on Oct. 4. The single currency has never climbed above the channel, and its upper limit was about $1.2674 today, according to data compiled by Bloomberg.