An exchange traded fund that follows the euro’s movements against the U.S. dollar was fractionally lower Monday after the currency hit seven-month lows versus the greenback.
The euro “was seen still vulnerable over the next few weeks on persistent fears of a Greek default and the risk of contagion in the region’s banking system and larger economies,” Reuters reported Monday.
CurrencyShares Euro Trust (NYSEArca: FXE) was fractionally lower. The euro ETF’s steep decline recently has pushed it below its 200-day moving average and the support trend line from the 2010 low.
“FXE deterioration on Friday terminated the uptrend which started at the June 2010 low. The channel off the low was broken and a top was also confirmed,” said Tarquin Coe, Investors Intelligence technical analyst, in a newsletter Monday. “The longer-term chart has also taken a turn for the worse. The breakdown has occurred from three year trend line line resistance. The two prior down legs which began from this line persisted for months.”