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.
EUR/USD breaks down further
A weakening in the US housing market, according to Monday’s release of the US existing home sales data which came in at 4.93m (prev. 5.25m), wasn’t enough to stem EUR/USD weakness and has continued to edge lower.
Ahead of the London open, however, EUR/USD was up 0.06%, trading at $1.2235 and retesting a previous area of resistance at $1.2239. This could turn into support if a close is seen below this level.
Further short-term downside in EUR/USD could be realised should expectations be met for a rebound to 1.1% in US core durable goods orders data, scheduled for release at 13:30 (London time).
Tuesday’s area of support/resistance is seen at $1.2239, which if held could then see a further move lower to $1.2176.