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 punches higher from deep retracement
EUR/USD punched higher yesterday after a very bullish assessment from Mario Draghi. This brought us back above the key $1.1285 resistance level, thus ending any hopes of the bears given the inability to fall below $1.1110.
Thankfully we hit the 76.4% first, bringing with it a nice risk-to-reward trade. For today, we are heavily extended to the upside. While we could see further upside, it is going to be difficult to carve out a decent trade given the distance to the most recent swing low of $1.1171. As such, watch out for retracements or intraday continuation patterns. A break back below $1.1171 would negate this bullish outlook.