“The euro may fall to its weakest level since August, Brown Brothers Harriman & Co. said, citing an M-shaped trading pattern known as a double-top formation.
The 17-nation euro is trading near $1.28, where the neck line of the double top comprising the Sept. 17 high of $1.3172 and the Oct. 17 high of $1.3140 lies, said Marc Chandler, the global head of currency strategy at Brown Brothers in New York.
“The minimum objective of the pattern is around $1.2450, which is just beyond the 61.8% retracement of the euro’s Q3 rally,” Chandler wrote in an emailed-note yesterday, also citing a chart based on the Fibonacci sequence of numbers. He is “cautiously bearish,” Chandler said.
The euro fell 0.3 percent to $1.2782 as of 10:03 a.m. in Tokyo from the close yesterday in New York. The $1.2450 level was last seen on Aug. 22. The currency had advanced from a low of $1.2043 on July 24 to a high of $1.3172 on Sept. 17.”
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