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 retraces after recent rally
EUR/USD is pulling back, after a week of gains that took the pair into a three-year high. This recent breakout from consolidation brings us back into the primary uptrend.
So far, this morning’s retracement has taken us into the 76.4% Fibonacci level. This is expected to bring about bounce, with a drop below $1.2384 required to negate this short-term uptrend. That being said, be aware that with the European Central Bank (ECB) meeting due today, there is a significant chance that Mario Draghi will seek to devalue the euro, raising the likeliness of short-term volatility.