The euro’s almost 2 percent rally since July 21 may extend to the 200-day moving average of $1.3618 provided the 16-nation currency breaks above resistance around the $1.31 area, according to Citigroup Inc. The euro has held above support at $1.2723 since it snapped a seven-month trend lower on July 13, a chart by Citigroup technical analysts Tom Fitzpatrick in New York and Shyam Devani in London shows. The currency’s next target range is between $1.3095 and $1.3114, they said in a note to clients today. “Consolidation seems to be over and the short-term uptrend looks to have resumed,” Fitzpatrick and Devani said. “A rally through here would open the way for further gains towards the 200-day moving average.” The euro was little changed at $1.2975 at 11:30 a.m. in New York after trading as much as 0.4 percent higher at $1.3046. It last traded above the $1.3618 level on April 15, two weeks before the European Union agreed to bail out Greece on May 2. In technical analysis, investors and analysts study charts of trading patterns to forecast changes in a security, commodity, currency or index. A support level is an area on a chart where orders to buy a currency versus a counterpart may be placed, potentially blocking a decline. Resistance is the opposite, and an advance above those levels typically indicate further gains. To contact the reporter on this story: Oliver Biggadike in New York at obiggadike@bloomberg.net

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