Euro Falls to Lowest in More Than Six Months on Greece’s Crisis
January 29th, 2010WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
The squiggly wigglies told the tale in advance:
There is an uptrending support line on the USDX that goes back to March 2008. The USDX is subtly indicating that it is going to bounce off of that support.
Via: Bloomberg:
The euro declined to the lowest level against the dollar and yen in more than six months as Greece’s and Portugal’s budget crises spurred a retreat from riskier assets.
The common currency fell against most of its major counterparts including the Canadian dollar as the cost to insure Greece’s sovereign debt rose to a record. The yen climbed against the Norwegian krone and Brazilian real as investors sought refuge from European budget turmoil.
“People are nervous that there’s continued deterioration in those countries,” said Christian Bendixen, director of technical research at Bay Crest Partners in New York. “They no longer trust the euro, and they’re moving out of it.”
The euro weakened 0.4 percent to $1.3963 at 4:22 p.m. in New York, from $1.4024 yesterday, after reaching $1.3938, the lowest level since July 14. The euro decreased 0.6 percent to 125.53 yen, from 126.25. It touched 125.11, the lowest since April 28. The dollar dropped 0.1 percent to 89.90 yen, from 90.
Europe’s currency earlier traded as high as 127.08 yen before falling to a nine-month low, confirming a trend of weakness that began on Jan. 14, according to MacNeil Curry, a technical strategist at Barclays Plc in New York.
