“The euro is likely to extend its 1.3 percent drop in the past three sessions against the U.S. dollarthis week, according to IG Markets Securities Ltd., which cited trading patterns.
The 17-nation currency has fallen below its 200-day moving average and continues to trade below it, according to Junichi Ishikawa, a Tokyo-based analyst at IG Markets. “The euro has broken the $1.28 level after falling below its 200-day moving average and technical indicators are suggesting further declines,” he said.
The $1.2755 level, which the euro failed to break below on Sept. 10 and Sept. 11, will act as an initial support, Ishikawa said. Should the euro fall below that level, it could test $1.2739, near the 38.2 percent retracement from its rise from the July 24 low of $1.2043 to the Sept. 17 high of $1.3172 on the Fibonacci chart, he said. The euro last touched $1.2739 on Sept. 7.”
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