Chart of the day: Euro on a roll
Since President Donald Trump started work, the US dollar has done nothing but roll downhill, losing its value against all other major currencies. Leading the pack is the euro, despite the weaker economic growth and higher unemployment in the euro zone than in the US, closely followed by the Mexican peso, which has gained 14 per cent during the period despite concerns over the North American Free Trade Agreement (Nafta). On Friday, the euro managed a weekly close above the 50 per cent retracement level, a point where many are forced to review long-term plans. The well-established rally accelerated after Christmas, helped by the 50-day moving average, and momentum has become bullish again. Therefore, we favour a quick jump to US$1.26, followed by a slower move to the psychologically important US$1.30 area.
Nicole Elliott is a technical analyst