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Euro to Feel Pressure Before Another Rally: Charts

CNBC.com
Tuesday, 9 Nov 2010 | 9:02 AM ET

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.

Euro, DAX Heading Lower?
For the very short term we should expect some downside pressure on the euro, Roelof van den Akker, chartist at ING Wholesale Banking told CNBC. For the Xetra DAX there might be some short-term upside potential left, but we are nearing strong resistance and a somewhat larger correction, he said.

“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.

Contact Europe: Economy

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