Euro Technical Levels Review Of Last Week

The courses of the single currency resumed Thursday on the height expectations for release of the situation in Italy. But the meltdown of the day paved the way for a return of the lowest in October.

At 3:00 p.m. Thursday, the euro rose 0.8% to 1.363 against the dollar. The single currency was driven by expectations of unblocking the situation in Italy. Berlusconi said Thursday its support for the former European Commissioner Mario Monti, tipped to succeed him as head of the executive. At this announcement, the yield of the loan Italian relaxed a bit after a record high the previous day to about 7.4%. The rebound of the euro, however, appears very pale after the downfall of the previous day. The courses have indeed fallen by more than 2%. The trend is now clearly bearish in the short to medium term. In the short term, a major graphics support was broken. An admission of weakness that makes the threat of a return on the lowest from October to 1.316, ie, the current prices, a 3.7% gap. We remain negative below 1.387. In the medium term, parity is a vast third of the entire cycle of decline triggered the end of August. The downward trend started on October 28 should be of a magnitude less than that recorded between August 30 and October 4, about 10%. This would bring parity in its January low of around 1.29. Below, we would aim 1.262.