WSJ chartists debate importance of 1.32

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Analysts have long warned that the $1.32 area was the only thing standing between the euro and chartist Armageddon. Well, don’t look now…

In the event of a convincing break of the euro below that technical support, Bank of America and Scotia Capital are targeting a re-test of the common currency’s Oct. 4 low at $1.3145, with Scotia’s analysts saying a test of 1.30 is all but a near-term certainty.

Credit Suisse is even more bearish: The bank’s analysts wrote this morning that they expect the euro to hit $1.25 by early next year.

The euro today off about 1.5% to trade recently near $1.3196 after hitting intraday low — and the lowest point since early October — of $1.3178.

A euro break of $1.3145 would take common currency back to levels not seen since January.