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 rebounds from key support zone
EUR/USD is breaking higher from the $1.1510 support level yet again, with yesterday’s Bank of England (BoE) meeting helping drive European FX higher.
The break through $1.1644 provides a bullish short-term view, with questions raised over whether we are seeing a retracement or bottom for the pair. Key to this is the fact that we have seen flat-lining bottoms, given the failure to break to a new low yesterday. With the price breaking above $1.1644, it looks likely that we will head higher, with the 61.8% and $1.1727 level being the first zone of resistance. A break through $1.1852 would signal a wider recovery phase for the pair. Until then, there is a chance this will be a retracement within a wider bearish downtrend.