Euro to Feel Pressure Before Another Rally: Charts
The euro will see some downward pressure in the short term after peaking just below $1.4330, but expect to see another rally attempt before long, Roelof van den Akker, chartist at ING Wholesale Banking told CNBC on Tuesday.
“Very short term, prices are somewhat consolidating … For the very short term we should expect some downside pressure. However, downside potential is limited,” van den Akker said.
In the past year and a half the euro/dollar rate saw some “violent” upward and downward moves, he said.
“This is still a very interesting trending market from time to time.” “The 50-day moving average line, which is still rising, comes in at 1.3550, so in our opinion prices should bottom above this support area … and from here, another rally attempt … should be expected, with intermediate strong horizontal resistance at 1.4330,” he added.
Van den Akker also said there might be some short-term upside potential left for Germany’s benchmark DAX index, but warned we are nearing strong resistance and should expect a correction.