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EUR/USD, GBP/USD and AUD/USD all continue to fall

Dollar strength and ECB jawboning at the main elements at play in FX markets at present, as key pairs continue to retreat for the time being.

EUR/USD continues to weaken

EUR/USD has fallen sharply for another day, as the European Central Bank (ECB) does its best to talk the currency down.

The pair now finds itself back at the rising trendline from the beginning of August. A break above $1.184 would signal a rally through the upper band of the descending channel seen over the past two days. Alternatively, the price will need to push below $1.178 to consolidate the bearish view and open the way to further downside.

GBP/USD retreats again

Dollar strength continues to weigh on GBP/USD, with yesterday’s attempt to rally faltering and leading to further downside.

A possible rally through $1.332 would mark a break to the upside from trendline resistance, while a move back below $1.3254 would put the price back below the twin peaks of mid-August and mark a more bearish development.

AUD/USD resumes its move lower

The weakness here is an interesting counterpoint to the strength in equities, as AUD/USD retreats from the high seen at the end of August.

Intraday rallies have failed to gain traction, and the overall move lower continues. There is some distance before the August rising trendline comes into play, so bulls will hope that a higher low can be established at the 200-day simple moving average (SMA) of $0.7278.

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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