News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Guest Commentary: Spanish IBEX Leading EUR/USD Lower

Guest Commentary: Spanish IBEX Leading EUR/USD Lower

Eric Morera, Technical Strategist

The Spanish IBEX has a very strong correlation with EURUSD and we always use this Index as a proxy to gauge the direction of the next move in EURUSD currency pair. IBEX formed a peak @ 8752 on 1.28.2013 and made a sharp 5 wave decline.

That was enough reason for us to get cautious on EURUSD and we knew a top was just around the corner. EURUSD formed a peak 4 days later on 2.1.2013 and has been trading lower since then. IBEX decline from secondary peak (8675) is incomplete and is in need of 2 more lows which means there should be more downside in EURUSD too toward 1.2600 and may be even 1.2500 region.

Shorter cycles in IBEX are calling for a corrective bounce before more downside which could result in a recovery in EURUSD toward 1.2900 before further weakness is seen.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.