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 pullback fails to convince
The pair began turning lower overnight, following on from a retracement higher. As such, this move higher looked more like a temporary bounce than a bottom. However, the shallow retracement we have seen since is not convincing as the spark for another move lower and thus we could move higher yet, with the 76.4% retracement (1.1287) of particular interest.
Ultimately, we would need to see an hourly close above 1.1309 to bring about a more bullish view. Otherwise, the downtrend has a good chance of returning. It may just not be quite yet.