Citigroup: a euro / dollar has the potential to reduce

Euro / dollar continues to climb, and after the pair break above $ 1.4000, the blow proved Ofer about $ 1.4020/25, break above which will open the way to further increase to $ 1.4050 and $ 1.4075/85. Currency strategists Citigroup, however, the bulls are advised not deceive ourselves, and warned that attempts to increase the euro will likely be limited, providing an opportunity to open short positions. The bank noted that developments in recent weeks signals the weakening of the positive mood in relation to the single currency and point to the deterioration of the technical picture. Strategy, in particular pay attention to the failure to develop an offensive bulls above $ 1.42, as well as to fail when you try to pair gain above the line of resistance from record highs last year, and sees the risk of renewed decline in the euro initially support at $ 1.3748, near which runs 55 -- day moving average, and perhaps to $ 1.33.