Euro slumps to new four-year low versus US dollar


Going down, down, down...that ring of fire!

Once again, the Euro established a new 4-year low against the dollar. Marketwatch.com has a great report on the Euro:

The euro hit a four-year low against the U.S. dollar Friday, losing ground as weak U.S. payroll figures and mounting concerns about Hungary’s fiscal situation prompted investors to run toward the relative safety of the greenback.

Against the dollar, the euro /quotes/comstock/21o!x:seurusd (CUR_EURUSD 1.1973, -0.0188, -1.5459%) traded at $1.1966, and fell to a four-year low of $1.1954, breaking the key level of $1.20 for the first time since late March 2006.

How much more could it slip? How much could it bounce?

“The next level [for the euro] I’ll look at is the October 2005 low at $1.18,” said Bruce Zaro, chief technical strategist at Delta Global Advisors. “Below that, you’ve got $1.09 in August of 2003. The trend has been confirmed negative on the euro and positive on the dollar.”

He noted that an upside break for the euro would be above $1.26. “Anytime an asset is in a trend up or down, there are always small counter-trends. Those are profit-taking moves looking to short the euro or thinking it’s undervalued,” he said.”

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