Nov. 3 (Bloomberg) -- Investors should buy the euro against the dollar based on the 55-day moving average after unwinding bets against the common currency, according to Citigroup Inc.

“Time to take profit on euro-dollar shorts, go to the sidelines and look again,” analysts Tom Fitzpatrick in New York and Shyam Devani in London wrote in a note today. “Given the hold of the 55-day moving average on euro-dollar and the Dollar Index, the surge to new highs in gold, the attempted recovery in equities and the move higher in long-end yields, the risk trade might get some short-term legs again.”

Citigroup advised buying the euro at $1.4658 and selling the currency at $1.4558. The euro has support, a trading area where buy orders may be clustered, between $1.4585 and $1.4625, the analysts said. The currency weakened 0.6 percent to $1.4687 at 1:07 p.m. in New York and has a 55-day moving average of $1.4628.

The New York-based bank earlier today advised clients to close a trade it recommended on Oct. 27 to buy the greenback against the European currency.

Gold futures for December delivery rose to a record $1,085.50 an ounce today on the Comex division of the New York Mercantile Exchange. The previous record was $1,072 an ounce, set on Oct. 14.

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 reporters on this story: Matt Townsend in New York at mtownsend9@bloomberg.net.

Last Updated: November 3, 2009 13:07 EST