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EUR/USD, GBP/USD, and AUD/USD on the rise after Georgia runoff

The dollar has come under pressure after the Democrats look to have taken the Senate, with EUR/USD, GBP/USD, and AUD/USD all gaining ground.

EUR/USD sharply higher as risk-on sentiment hurts dollar

EUR/USD has been gaining ground this morning, with growing expectations of a Democrat victory in Georgia looking to pave the way for a fresh bout of stimulus once US President-elect Joe Biden takes office.

With the price having broken through the $1.2327 overnight peak, the intraday uptrend remains key here. With the pair starting to pull back, short-term weakness is seen as a buying opportunity. As such, long positions are favored unless the price breaks below the $1.2275 swing low.

GBP/USD likely to gain ground from here

GBP/USD has also been on the rise, with the recent recovery phase gradually taking shape after the lockdown-fueled weakness on Monday.

Nevertheless, with the pair on the rise, it looks likely we will see further gains take hold unless we break from this current trend of higher lows. As such, a bullish view is in play unless price falls back below the $1.3592 support level.

AUD/USD likely to benefit from Democrat sweep

AUD/USD has been on the rise in anticipation of a full Democrat sweep in congress, with Biden’s plan to enact a huge green infrastructure program likely to bolster commodity prices.

With the dollar also coming under pressure, we are looking at a potential long-term uptrend for AUD/USD. Looking at the pair from a short-term perspective, the creation of higher lows will remain key to staying long for this pair. As such, a bullish outlook holds unless price falls back below the $0.7733 low.

This information has been prepared by IG, a trading name of IG US LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. Any research provided should be considered as promotional and was prepared in accordance with CFTC 1.71 and designed to promote the independence of investment research. See our Summary Conflicts Policy, available on our website.

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