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 regaining strength following sharp sell-off
EUR/USD managed to tumble sharply from the key resistance level of $1.1774 yesterday, bringing the price below $1.1654. That break below near-term support raises the likeliness of a further drop, towards the bottom boundaries of this symmetrical triangle formation.
A break through $1.1774 (bullish) or $1.1574 (bearish) would dictate where the breakout from this pattern will go. Until then, it makes sense to play the triangle. In the near term, there is a good chance we will see some form of rebound to retrace some of yesterday’s losses.
.jpg)
