Forex On Thursday: Bearish Tone Continues For Euro

Pressure seems set to continue on the euro on Thursday, after the currency broke below the 1.4480 level in Asia.

CMC Markets currency analyst Michael Hewson now sees the euro targeting its 200-day moving average at 1.4175, as well as the 38.2% Fibonacci retracement level at 1.4120. The move towards the 1.3800 level flagged up yesterday could well be starting to play out.

The British pound is also under pressure, Hewson says, as the move above 1.6310 against the U.S. dollar on Wednesday to 1.6410 turned out to be a bit of a false break-out -- the pound sank back below 1.6300 as the dollar rebounded. A break of 1.6200 still looks to target 1.6000.

The dollar is also expected to continue its rise against the Japanese yen on Thursday.