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What Technical Factors Are Saying About the Euro

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Mike Kemp | Getty Images

Think the euro's had a rough ride lately? Fasten your seatbelts, this strategist says.

Fundamentals and news have not done much for the euro lately - and now technical indicators are kind of grim too.

How grim?

"Failing over the past week to get to 1.33 or 1.35 opens up the risk of a flip down towards 1.25, maybe 1.23," says Timothy Riddell, head of global markets research, Asia, for ANZ.

"We've really been at the upper range of the euro for some time," he told CNBC. "But over the past few years, we've had quite aggressive selloffs, and I would suggest that we're at risk of a similar selloff." Riddell thinks the euro could hit the lows of late 2008 or even 2010, around 1.1875.

The euro isn't just facing headwinds against the dollar, he adds. "We're breaking to some key areas in euro-Aussie," he says, adding that there is a risk that cross could fall to 1.20.

"We're getting a lot of technical pressure on the euro."

You can watch the discussion, and see the disturbing charts, on the videotape.

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