The Euro Falls To A Four-Month Low

FXstreet.com (Barcelona) – The Euro is trading at its lower level since March, Nicole Elliott, senior technical analyst at Mizuho Corporate Bank observes the possibility of consolidation around 1.52: “This is seen as a much-needed clear-out which should eventually turn into some sort of ‘spike low’. The Euro is more oversold than it has been since December 2005 after four consecutive weekly declines. For this morning expect prices to try and base around the 1.5200 area, then wait and watch for a reversal pattern if not today then over the coming week.”

Strategywise, Elliott advices: “Possibly attempt small longs at 1.5235; stop below 1.5175. Add to longs on a sustained break above 1.5315 for 1.5350 short term and then 1.5400.”