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 more downside is possible
EUR/USD has suffered two days of heavy losses, and has begun nosing its way through support levels at $1.0950 and $1.09.
Already an overnight rally appears to be losing steam at $1.09, providing further indications that more downside is possible. Key short-term support lies in the area $1.0829-$1.0851, and if this is broken then we may well see a swift move to the rising trendline from the December lows. A recovery above $1.09 would suggest a move back to resistance at $1.10.