Euro’s Big Month Has Chart-Watchers Looking Back to 2010 Levels
- Breach of $1.1714 has analysts eyeing $1.1877, then $1.2043
- Demand for euro calls builds, though appreciation may slow
A man counts euro notes in this arranged photograph in Tokyo, Japan, on Thursday, Dec. 29, 2011. The euro weakened to a decade low against the yen before Italy auctions as much as 8.5 billion euros ($11 billion) of debt. European shares and U.S. equity-index futures climbed.
Photographer: Tomohiro Ohsumi/BloombergAfter the euro surged through a critical technical level last week, analysts who study charts to help guide their predictions are looking back to 2010 for perspective on how high it could rise.
Europe’s common currency traded at about $1.1830 Wednesday, extending an advance after breaching the key $1.1714 mark July 26 for the first time since August 2015. The euro is coming off a five-month rally, its longest since 2013, propelled by interest-rate differentials that have gone in its favor and broad dollar weakness.