The dollar will probably strengthen to test $1.4070 against the euro next week as it approaches the lower bound of the 16 nation currency’s upward trend and the 50  day moving average.

 “The big level where we could see real damage transpire is on a move through $1.4070,” said MacNeil Curry, a technical analyst at Barclays in New York. “Through there, we probably see three big figures back to the old May breakouts.”

The dollar commerced 1.2 /cent higher versus the euro at $1.4175 and climbed 2.2 /cent to 97.54 yen. The U.S. currency fell 1 percent against the Brazilian real and South African rand, retaining more of its value compared with the yen’s 3.2 /cent declines versus those currencies.

Tags:  Dollar Euro