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 drifts towards key support
EUR/USD continues to move lower, as it approaches the crucial $1.1109 support level. The break below there would provide a bearish picture for the short term. However, given that we are trading within a falling wedge, there is a good chance that we will see a break higher soon enough.
Ultimately it seems to be a case of which will come first, a break below $1.1109 would point towards any bounce, but is as likely a precursor to further downside.