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 expected to weaken once more
EUR/USD is rallying after a fall through trendline support yesterday, providing us with even more confidence of a significant move lower for the pair. The medium-term downtrend coincides with the short-term bearish view, with price having dropped out of a symmetrical triangle formation off the back of a head and shoulders break.
With that in mind, this current rally looks like an opportunity to get short at a more advantageous price, where a bearish short-term view remains unless we see an hourly close back above $1.1261. Given the break below the $1.1216 support level, it makes sense that we are seeing the pair round off and thus another move lower seems highly likely here.