The information 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 Bank S.A. 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 and as such is considered to be a marketing communication.
A failure of the Aug 2012 lows and 76.4% retracement of the 2013 to 2104 sell-off has also been seen, and on the weekly chart it looks as though we are going to see a sizeable bearish weekly reversal.
Looking at the oscillators, the MACD is below the signal line and stochastics have made a lower low. You can also see the stochastic on the weekly chart looks ominously poised to fall.
Traders might look to sell the pair around these levels, with a potential stop at 1.1230 (just above the May 30 high), for a potential move to 1.0865 to 1.0800.