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.
Is EUR/USD pullback a retracement or reversal?
EUR/USD continues to move gradually lower, following a rally into the $1.0630 resistance zone on Monday. The price has found support around $1.0558, with the notable swing low of $1.0543 coming within increasingly close proximity.
An hourly close below $1.0558 points toward another leg lower, yet with a bullish falling wedge in formation, it looks as if we could break higher from the current downturn. However, until we take out the latest swing high (currently $1.0588), further downside seems likely.