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 downtrend continues
EUR/USD has been selling off in a consistent manner since topping off last week, with a break below $1.0719 in particular leading to a more bearish outlook. That said, this pullback is seen within a wider context of higher highs and higher lows on the daily timeframe.
As such, look out for this current sell-off to be a potential retracement of the rally from $1.0494, with the Fibonacci support levels coming into view. We have seen the 61.8% come into play already, marking the low of last week. An hourly close below that level points towards another decent leg lower, with $1.0591 (76.4%) a potential destination. Conversely, an hourly close above $1.0702 could signal that the 61.8% is the ‘be all and end all’ for this sell-off.
.jpg)
