Euro Plunges as Greek Leader Loses Support - Bloomberg

Euro Plunges as Greek Leader Loses Support -

Greek Developments

The euro fell today by the most since May 5.

“Some resolution is necessary and the longer Greece kind of wavers in this grey area the more toxic for the euro,” said Jessica Hoversen, a New York-based analyst at futures broker MF Global Holdings Ltd. “Euro weakness will be broad based.”

The euro may fall below $1.40 for the first time in three weeks, according to Citigroup Inc., citing technical indicators.

The failure of the euro to break above $1.4711, the 76.4 percent Fibonacci retracement level from the May 4 high of $1.4940, has seen the euro weaken 3.3 percent against the dollar. Today’s break below the 55-day moving average of $1.4409 may see the euro weaken to $1.3970, said Tom Fitzpatrick, chief technical analyst at Citigroup in New York.

“The inability to break the 76.4 percent retracement level signaled a danger to push lower,” Fitzpatrick said in an interview. “The euro is trading heavily, so our sense is we can go and retest the $1.3968 level and if that breaks there is a danger we see that move accelerate.”