Euro May Extend Decline to $1.3355 on Charts, Citigroup Says

By Ron Harui

Sept. 5 (Bloomberg) -- The euro may extend its decline to $1.3355 should it close this week below so-called support between $1.4310 and $1.4365, technical analysts at Citigroup Global Markets Inc. said.

The support area consists of the lows of the week ending Dec. 21, 2007, and the week ending Jan. 25, 2008, according to data compiled by Bloomberg. Support is where buy orders may be clustered.

``A weekly close below here would suggest that this move could still have further to go with the logical target being the 200-week moving average, which now stands at $1.3355,'' Citigroup's New York-based Tom Fitzpatrick and London-based Shyam Devani wrote in a research note yesterday.


The euro fell to $1.4284 as of 12:50 p.m. in Tokyo from $1.4325 late in New York yesterday. It earlier reached $1.4214, the weakest since Oct. 24. The currency has dropped 10.9 percent since its record high of $1.6038 on July 15.

In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index. Resistance is where sell orders may be clustered, while support is where there may be buy orders.

To contact the reporter on this story: Ron Harui in Singapore at rharui@bloomberg.net