By Ron Harui
March 31 (Bloomberg) -- The euro is poised to gain versus the dollar as long as the currency stays above so-called support at $1.3065, said BNP Paribas SA, citing trading patterns.
Support at $1.3065 represents an ascending trend line that connects the European currency’s lows of March 4 though March 11, according to data compiled by Bloomberg. Support is a level where buy orders may be clustered.
“Overall, holding above $1.3065, the mood remains bullish,” Claude Mattern, a Paris-based technical analyst at BNP Paribas, wrote in a research note today. “The currency pair is consolidating the fall of the past few days.”
The euro rose to $1.3274 as of 9:22 a.m. in London from $1.3199 in New York yesterday, when it reached $1.3114, the lowest since March 18. The currency has dropped 5 percent this year and is heading for a fourth quarterly decline, the longest losing streak since December 2005.
“The euro-dollar, meeting support on a minor trend line, is slightly rebounding within the range of the past few days,” Mattern wrote.
In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index.
To contact the reporter on this story: Ron Harui in Singapore at rharui@bloomberg.net.
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