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 rally proves fleeting
EUR/USD managed to spike higher overnight, but the move proved fleeting, with the price subsequently returning to the consolidation area once more. We are seeing little volatility this morning. Although, once things get moving, there is a good chance we could see another move higher to post a deeper retracement of the $1.1858-1.1725 drop.
However, that would be a counter-trend move, given the wider downtrend. A move back below $1.1725 would essentially negate the notion of a further upside move over the short-term, pointing towards further losses.