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 in recovery mode following sell-off
Friday’s break below the key $1.1219 support level provided us with a renewed bearish outlook in EUR/USD, with the pair breaking below a key trendline support. The current resurgence is unlikely to last, yet the depth of this rally is of course uncertain.
With that in mind, it either makes sense to await a more developed formation to sell into, or else await an hourly close below $1.1149. The key requirement for the bearish short-term view to also reflect a medium-term bearish confirmation comes with a break and hold below $1.1123.