Sept. 18 (Bloomberg) -- The euro may advance to $1.4866 after the currency climbed above its December-high of $1.4720 this week, BNP Paribas SA said, citing trading patterns. The 16-nation currency will approach the strongest level since September against the greenback even though some technical indicators suggest it becoming “overbought,” according to a team of analysts led by Hans-Guenter Redeker, global head of currency strategy at BNP Paribas in London. “The choppy rise of the past week is expected to continue,” the analysts wrote in a note to clients yesterday. “The break above the $1.4720 December high now targets $1.4865 long-term resistance. As long as $1.4640 support holds, the rise can continue to defy its extremely overbought conditions.” Europe’s single currency traded at $1.4728 as of 9:54 a.m. in Tokyo, from $1.4741 yesterday in New York, when it advanced to $1.4767, the strongest level since Sept. 25, 2008. The target of $1.4866 represents the highest level the euro reached last September, while $1.4640 is the Sept. 16 intraday low, according to data compiled by Bloomberg. A resistance level is where sell orders may be clustered. Support is where there may be orders to buy. A gauge of performance suggests the recent gains in Europe’s single currency may be about to end. The 14-day relative strength index climbed to 73 today, above the 70 level that signals the currency is poised to weaken. In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index. To contact the reporter on this story: Theresa Barraclough in Tokyo at

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