Euro technicals also potentially portend more downside for the currency.

“First, the euro’s 233-monthly moving average has capped its advance for the second time in as many months. A look at the chart underlines how strong this gauge has proved in the past,” according to Bloomberg. “And after failing to sustain a move above $1.20 at numerous attempts, the euro headed lower and has dropped below a support at $1.1850. This completed the breakout of a so-called head-and-shoulders pattern, a signal to analysts of a trend reversal. Given the high on Sept. 8 at $1.2092 and the neckline since an Aug. 31 low at $1.1823, this breakout suggests a price target near $1.1600.”

Investors have pulled $56.2 million from FXE since the start of the third quarter.

For more information on hedged options, visit our currency hedged ETFs category.