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 slows down after a new high yesterday
Having pushed to a fresh high yesterday, it is not surprising to see some weakness coming through for EUR/USD. First support is to be found at $1.19, and even if this breaks the $1.17-$1.18 area itself is still likely to be a tough nut to crack for euro bears.
It makes sense to keep buying the dips here, unless and until the pair decisively breaks the 50-day simple moving average (SMA) that continues on an upward trajectory. A push back above $1.1976 leaves the pair free to contemplate a fresh attempt to break Tuesday’s high at $1.2074.