EUR/USD falls below 100DMA once again

The effects of the linear tapering from the Federal Reserve have helped a stronger dollar to emerge, with the euro dropping below the 1.36 level and testing the important 100-day moving average again.

The downtrend resistance from the 1.38 levels and the 1.37 level have kept the euro from climbing too far. And with the inflation data for the eurozone due tomorrow, there is still an element of speculation that some form of monetary policy change will come, should the disinflation spiral continue.

Any drop through 1.3590 puts the 1.3500 level back in focus for EUR/USD – there is significant support at this level.

Spot FX EUR/USD chart

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.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.