Chart of the day: Euro woes
On decent volume over the past five weeks and with the cost of puts rising, the euro has been struggling at two-year lows before dipping to its weakest since 2003. The weekly closes below the bottom of the symmetrical triangle followed by that on Friday below horizontal support confirm a break lower. This is seen as another step in the secular trend to euro weakness against the US dollar that started in early 2008. Moving averages and momentum are bearish, too, and the first measured target based on the height of the triangle is 0.99, with a second one at 0.95. No doubt much attention will be garnered on a break below parity, but remember that the record low was set in 2000 at 0.8225.
Nicole Elliott is a technical analyst