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 rallies into deep retracement
EUR/USD punched higher in the second half of the week, with a raft of EUR positive growth forecasts coupled with USD negative news regarding tax reforms hitting the pair.
However, we are not out of the downtrend yet, and with the price rallying into a wider retracement between 61.8% and 76.4%. As such, there is a good chance we could see the pair begin to turn lower once more as we close out the week, with a move back above $1.1691 required to negate the bearish bias.