(Bloomberg) -- The euro will probably fall further against the dollar, potentially signaling a decline in U.S. stocks, according to a Citigroup Inc. report that cites trading patterns.

The 16-nation currency may fall to between $1.28 and $1.2760 after depreciating below a support level at $1.3113 and the 55-day moving average of $1.3025, Citigroup technical analysts Tom Fitzpatrick in New York and Shyam Devani in London wrote in a note today. The euro’s decline may signal a drop in the Standard & Poor’s 500 Index, they wrote.

“Euro-dollar has broken lower and further losses are expected,” the report said. “Is this giving a leading indication of where the stock market may be heading?”

The euro fell on Jan. 5, breaking through “near-term support levels” the day before a peak in the S&P 500 that preceded a two-month equities plunge, according to the Citigroup report. The drop took the stock index to a 12-year low March 6.

The shared European currency depreciated today for a fifth day, the longest stretch of declines since October, falling 1.1 percent to $1.2889, the lowest since March 16.

In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index. Support is where orders to buy a currency may be clustered.

To contact the reporter on this story: Oliver Biggadike in New York at obiggadike@bloomberg.net