The euro may fall as low as $ 1.2585 against the dollar

The euro may fall as low as $ 1.2585 against the dollar after it failed to break above key resistance zone, Societe Generale SA, said, citing technical indicators.

"The area bound back $ 1.3445/1.3450 euro and the dollar in turn lower, confirming the short-term risk is down," wrote the technical analysts and Manac'h Fabien Hugues Naka in Paris, in a research note today. "A swim back to last week's low at 1.2970 U.S. dollars remains the most likely scenario."

The euro fell 0.9 percent to $ 1.3288 at 2:51 pm in London. It reached $ 1.2969 on 30 November.

"A break below this low and below the $ 1.2920 call back for a dip in the region $ 1.2585/90 before the attempts of the euro-dollar back to the north," they wrote. That compares with the low U.S. $ 1.2588 August 24.

In technical analysis, investors and analysts study charts of trading patterns to predict changes in the security, commodity, currency or index. Support is on purchase orders may be grouped, and resistance is a level where sell orders may be grouped.