This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
EUR/USD decline intensifies after support break
EUR/USD has been selling off sharply since breaking below the $1.2154 support level last week. Yesterday’s price action was no different, with the price falling below the 200-day simple moving average (SMA).
This morning has seen a brief respite from that intense selling, with the pair rising into what looks like another retracement. The middle Bollinger band has provided us with a reliable resistance indicator of late, and this is likely to be the case should the price rally that far. As such, look out for a potential shorting opportunity at the middle Bollinger band, which coincides with the 50% retracement. A bearish outlook remains unless we see a break back above the $1.2139 swing high.