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 continues amid stronger dollar
The pair managed to break through the key $1.1326 support level yesterday, signifying the likeliness that this pullback is going to be a more protracted affair. We are clearly trending higher over the medium-term, yet for the short-term, we are now making lower highs and lows.
As such, while a bullish resurgence is expected between now and last Friday’s low of $1.1137, this sell-off looks to have legs. Thus a bearish short-term view is in place with the next key support levels at $1.1276 and $1.1250. However, an hourly close above $1.11337 would negate this view, bringing us back into the medium-term uptrend.