The outlook remains negative for the euro, says Nick Bennenbroek and Vassili Serebriakov, Currency Strategists at Wells Fargo Bank, citing the region’s economic recession and Greek political uncertainties, while technicals are also consistent with euro weakness.
Technically speaking, “The 20-day MA has crossed below the 50-day MA, while the RSI of 35 is not yet over-extended to the downside. Other momentum indicators are also consistent with euro declines,” observe the strategists. “Importantly, the euro is breaking below repeated prior lows, most notably the $1.2974 low from February. Expect modest support $1.2876 (late January low) and stronger support at $1.2623 (mad-January low).”
Technically speaking, “The 20-day MA has crossed below the 50-day MA, while the RSI of 35 is not yet over-extended to the downside. Other momentum indicators are also consistent with euro declines,” observe the strategists. “Importantly, the euro is breaking below repeated prior lows, most notably the $1.2974 low from February. Expect modest support $1.2876 (late January low) and stronger support at $1.2623 (mad-January low).”
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