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.
Euro supported by positive German data
EUR/USD is trading at 1.1339, up 0.24% at the London open on Monday, following the release of better-than-expected trade balance data from Germany. A print of 21.8 billion beat expectations of 18.3 billion, and was up from its previous level of 17.9 billion (revised form 17.7 billion). Having touched an overnight low of 1.1290, EUR/USD rallied to its current level, where it is likely to come under some resistance from the pair’s 200-hour moving average, currently placed at 1.1363. Should topside be broken then we are a likely to see a leg higher, with targets at the 100-hour moving average (1.1398), which if offered sustained support could see a re-testing of 1.1440. However, should bears continue to win over bulls and the 200-hour moving average hold, then a re-testing of the overnight lows of $1.1290 is likely, and if this is broken we could see a move lower to the 1.1186 level.