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 consolidating after sharp drive higher
EUR/USD pushed through the crucial $1.2355 resistance level yesterday, bringing about a more bullish drive towards the 61.8% and 76.4% retracements.
The former has been hit, yet another drive higher looks likely. However, given the sharp push higher yesterday, there is a strong chance we could see the pair move into retracement mode in the near term. This would be viewed as a short-term move, unless we see a break back below $1.2269 to signal a bearish shift. To the upside, look out for Fibonacci resistance at $.2461, with the pair still having a strong likeliness of turning lower given the break below $1.2205 last week. A rally through $1.2556 would be required to negate that view.