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Charts Predict: Dollar May Hit $1.60 Low vs Euro

CNBC.com
Wednesday, 21 Oct 2009 | 6:23 AM ET

The dollar is likely to sink further against the euro and could hit the lows of July 2007 at $1.60, Roelof van den Akker, chartist at ING Wholesale Banking, told CNBC.

Charts: Dollar May Hit $1.60 Low vs Euro
The dollar is likely to sink further against the euro and could hit the lows of July 2007 at $1.60, Roelof van den Akker, chartist at ING Wholesale Banking, told CNBC.

"Momentum keeps rising, confirming the uptrend," Akker said when looking at a chart for the euro versus the dollar.

"As long as the 50-day moving average line in the daily chart at 1.4550 remains intact we are remaining bullish for a further rise toward 1.5370 to around 1.60 for the euro/dollar," he said.

The dollar has been in a steady decline against the euro since early March as U.S. interest rates have remained near zero in response to the financial crisis. The weak dollar has helped to push the price of many commodities higher, such as oil and gold.

"It's highly interesting because there's still a high correlation between a higher euro and higher equity prices, so keep this in mind please," he said.

- Watch the video above to see Roelof van den Akker's predictions for European stocks.

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