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 bounce unlikely to last
The pair saw a highly volatile week just gone, yet the overall resolution was one of losses for the pair, closing out at a three week low. The overall trend of higher highs and higher lows has now been negated with the failure to break through 1.1465 and subsequent break to a new low.
As such, further losses seem likely, with sellers expected to capitalize on any early weakness today. With that in mind, watch out for Fibonacci retracements at 1.1264, 1.1274 and 1.1287 as potential bearish reversal points. A closed hourly candle above 1.1309 would provide a more bullish picture.