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.
EUR/USD bounces through Fibonacci level
EUR/USD has managed to gain a significant amount of ground this week, with the pair rallying through a number of short-term resistance levels. We have seen the pair pass through the 76.4% retracement, only to seemingly find it as new support overnight.
A break through $1.0655 would have significant wider considerations, bringing the potential for a longer lasting push higher for the pair. Considering that this rally is coming from an attempted breakout below $1.0462 on the longer term charts, the bearish short-term view is somewhat negated. Despite this 76.4% retracement looking like a potential short, there is a clear story building on a potential longer term recovery for the pair. As such, it is worth waiting to see if we can break above $1.0655 to dictate the state of play.