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 channeling higher towards 76.4%
EUR/USD has been gaining ground nicely this week, as the pair moves towards the deepest retracement of 76.4%. This period of upside was expected, yet the difficulty is in knowing whether we are retracing the short-term move of $1.1996-$1.1509 or the wider move from $1.2556. A break above $1.1996 would signal that wider move.
For now, there is a good chance of seeing another move higher before long, with a push into the 76.4% level expected. A break below $1.1652 would provide a bearish outlook. Until then, further upside seems likely in order to continue the short-term rising channel.