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 continues to consolidate
The pair continues to consolidate despite early signals of an upside breakout yesterday. The tops of this range have been less regular, with many coming between 1.1400-1.1413. However, the bottoms have been remarkably consistent, with the pair bouncing from within very close proximity to 1.1335 on four occasions now.
As such, given the current downward price-action, it is worth waiting for a move back to 1.1335 to either see another bounce towards 1.1400 or else a bearish breakdown. Should we return to that level, shorter intraday timeframes are important to gauge which of those two events are playing out.
Support levels of note are 1.1335, 1.1326, 1.1310 and 1.1291. Resistance levels to watch are 1.1376, 1.1413 and 1.1454.