This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Euro eyes $1.10
EUR/USD is pushing higher as the squeeze on the single currency persists. The euro has been in an upward trend versus the dollar since last week as the Federal Reserve’s dovish language triggered an exodus from the greenback. This morning’s trading session saw the release of the service and manufacturing PMI reports for the eurozone, which pushed higher in the month of March, adding to the short-term bull run that the currency pair has been experiencing. The euro’s performance in the past few trading sessions has been particularly impressive when you consider the wider selloff in the dollar.
The $1.09 level is providing support and if it is held then the resistance at $1.10 will be the target. If that metric is cleared the acid test will be the 50-day moving average $1.1123 – EUR/USD has not traded above the 50-DMA in over three months. A drop below $1.09 will bring the $1.0840/50 region into play and below that traders will look to $1.08.