Andy Chaveriat, technical analyst at BNP Paribas, says the break of
short term triangle support at $1.2525 "opens risk to $1.2330," the
lows seen in late October. He maintains that there is scope for a new
cycle low being seen in the sessions ahead, and he favors a medium term
decline to $1.2075/$1.1730 over the next few weeks. Nevertheless, Chaveriat notes that recent choppiness has also had
"corrective characteristics." If support near $1.2330 holds, it could
"represent basing" that would set the stage for a medium term rebound.
In this scenario, the euro could see a $1.2300 to $1.33 trading range
over the next couple weeks, he says.