Euro is already near it’s 3 months low. If you look at the one year chart of EURO versus the Dollar, you will find EURO staying above the 200 moving average. In a recent article on Yahoo Finance, Richard Ross thinks that EURO is going to fall more. The euro has twice tested the $1.40 level this year and failed, forming a double top pattern. The neckline of that double top, according to Ross’ chart, is the $1.3645 level, which the currency broke below. That also happens to be around where the 200-day moving average is at the moment, making its recent decline the first time the currency has been below the 200-day since September 2013. Ross sees that as a bearish sign. “If that breakdown holds—and I think it does—that provides a measured downside target of another 3 cents using the height of that pattern,” Ross said. “I’m looking for $1.33 on the euro this summer.” You can read the full Yahoo Finance article here.
