This information has been prepared by IG, a trading name of IG Australia Pty 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.
EUR/USD weakens from 61.8% retracement
EUR/USD weakened throughout much of yesterday, following a rally into the 61.8% retracement earlier in the week. There is a strong chance that we are seeing a retracement, set within the wider downtrend.
However, with flatlining lows coming around the crucial historical $1.1554 support level, there is also a possibility that we will form a base here, with a rally through $1.1852 pointing towards a more bullish phase coming into play. As such, there is an argument for both sides, which highlights the importance of obtaining a strong risk-to-reward, or else waiting it out. A rally into the 76.4% retracement looks attractive for shorts, while the option to wait it out would mean watching for a break above $1.1837, or below $1.1508 to dictate the directional bias.
.jpg)
