Euro On The Rebound, But How Far Will It Bounce?

Matthew Clements, analyst at Prebon Marshall Yamane in London, uses technical analysis to explain why the euro's recent upward swing will continue in 2001

The current market consensus is that the euro is set to build on gains seen last December and in the first week of the New Year. Chart analysis appears to confirm this bullish outlook, though the euro could remain vulnerable as it tests certain key levels.

On December 20, 2000 the euro/dollar rate finally broke out of a two-year downward