Sept. 11-- The euro may advance to a record high of $1.4550 against the dollar should it break the previous high of $1.3852, said analysts at Citigroup Global Markets Inc., citing charts that predict price movements.
That would match the high for the euro's ``theoretical value'' between August and September 1992, before the single European currency was created in 1999. The measure is calculated using the spot rates of the currencies that were then expected to form the euro, including the British Pound, German mark, French franc and Dutch gilder.
``The 1.3837-53 area on the euro-dollar remains very pivotal in the `big picture,''' analysts led by New York-based global head of currency strategy Tom Fitzpatrick, wrote in a research note yesterday. ``A decisive break above this range would open up the way for renewed gains. This could possibly take us all the way back to the Aug/Sept 1992 highs around 1.4550-75.''
The 1.3837-53 area is not only ``the recent trend high, but also the major pivot point in 1995,'' Fitzpatrick said.
The euro traded at $1.3797 versus the dollar at 6 a.m. in London from $1.3802 late yesterday in New York. It reached the record high on July 24. Europe's single currency has risen 4.5 percent versus the dollar in the past three months.
In technical analysis, investors and analysts study charts of trading patterns and prices to forecast price changes in a security, commodity, currency or index.
By Kosuke Goto (Bloomberg)