Friday, May 22, 2009

Citigroup expects further weakening of the dollar

According to analysts Citigroup, the U.S. currency is on the threshold of widespread easing in the medium term. Euro could reach $ 1.4720 mark, if this week to close above resistance at $ 1.3722 (up 13 May) and $ 1.3739 (up 19 May) against the dollar. According to the Bank's strategists, a week-long closing above $ 1.3739 would confirm the development of movement and closure of a pair of higher level of $ 1.3722 would be evidence of bovine trend. Today, the European currency reached a mark of $ 1.3978 - up to 2 January. The level of $ 1.4720 is the maximum of 18 December. At Citigroup consider the possible formation of the medium-long term, large pieces of "double bottom" with the line of the neck at $ 1.4720. To confirm such a scenario should be a week-long closing above that level. In this case, the possibility of movement to a maximum of $ 1.70. The level of $ 1.7000 would be a record maximum. At the moment, a historic high mark is $ 1.6038, which was reached on 15 July 2008.

No comments: