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Euro Seen Snapping Advance on Fed Tapering Bets: Market Reversal

The euro’s rally to a six-month high after the trading bloc emerged from its longest-ever recession is set to reverse, trading patterns show, as the impact of the stronger economy is overwhelmed by the U.S. paring stimulus.

A measure known as the euro’s moving average convergence-divergence gauge fell below its signal line last week, with momentum turning negative after the currency climbed to $1.3452 on Aug. 20, data compiled by Bloomberg show. The euro surpassed the upper limit of its 20-day Bollinger band gauge, which also signals a turnaround.