Technical Signals On Euro Spell Trouble: Strategist
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It's not enough that the German court gave mixed signals to the euro. Now the technical patterns aren't looking so good either.
When it comes to reading currency charts, it's best to do so with an eye to fundamentals as well. Todd Gordon, co-head of research and trading at Aspen Trading Group, is doing that, and he doesn't like the look of the euro.
"I think support was broken in the euro two days ago," he says, and while the currency rallied after Germany's top court rejected efforts to halt the Greek bailout, the rise was short lived. "The fact that we're below technical support and that rally overnight did not hold says there's an underlying weakness in the tape," Gordon told CNBC's Melissa Lee.
True, the move by the Swiss National Bank to cap Swiss franc levels also lifted the single currency - but Gordon points out that the euro quickly gave back ground after that event as well.
Gordon recommends selling the euro at $1.40 or $1.4050 with a stop at $1.42 and a target of $1.36.
You can watch the whole discussion in the video clip.
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