By Yoshiaki Nohara and Shigeki Nozawa
Sept. 11 (Bloomberg) -- The euro may rise to a nine-month high against the dollar by the end of this month, Bank of Tokyo- Mitsubishi UFJ Ltd. said, citing trading patterns.
The euro is likely to climb toward $1.4719, a level that represents a 100 percent Fibonacci retracement from the six- month low of $1.2457 reached on March 4, said Masashi Hashimoto, a Tokyo-based senior analyst at the bank. Daily momentum indicators such as the moving average convergence/divergence chart show buy signals for the euro against the dollar, he said.
“The euro is in an uptrend,” Hashimoto said yesterday. “The euro used to drop quickly following moderate gains in June and August, but its recent rally bucks that trend.”
The 16-nation currency may rise toward a resistance level of $1.4866 should the currency climb above $1.4719, Hashimoto said. Resistance is where sell orders may be clustered.
The euro was at $1.4580 as of 8:26 a.m. in Tokyo from $1.4582 in New York yesterday.
Fibonacci analysis is based on the theory that prices rise or fall by certain percentages after reaching a high or low. A break above resistance or below support indicates a currency may move to the next level. MACD charts can indicate whether a price shift is a change in trend or a short-term deviation by comparing moving averages based on nine-, 12- and 26-day periods.
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: Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net; Shigeki Nozawa in Tokyo at Snozawa1@bloomberg.net.
Posts
No comments:
Post a Comment