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 pulls back yet further gains in sight
Yesterday’s rise of EUR/USD took many by surprise. But set against the backdrop of the $1.0819 support holding, followed by higher highs and lows being created, this just fitted with the profile of the market right now. So far, both the legs higher have occurred at the 61.8% Fibonacci retracement and thus, there is a possibility we could move back down to $1.1 for the next leg higher.
However, be aware that markets rarely exhibit the same degree of retracement each time and usually alternate between shallow and deep pullbacks.
I am bullish and am watching the Fibonacci levels for support given previous respect of them. Thus I am watching for a bullish candlestick formation from one of the Fibonacci retracements to give confidence of the next leg higher. They come in at $1.1052 (38.2%), $1.1027 (50%) and $1.1 (62.8%).