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EUR/USD, GBP/USD and AUD/USD all moving higher

Risk appetite has revived, with AUD/USD in particular on the rise as investor confidence regarding a global recovery increases.

EUR/USD poised to break out

EUR/USD has managed to reverse some of the bearish impression created in mid-April with lower highs and lower lows.

A rebound from Friday’s low remains in place, and if we see a breakout from this wedge formation of the past day then a fresh push towards $1.086 and higher could be in play. Alternatively, a drop below $1.08 suggests a more bearish view has returned, and now $1.073 and Friday’s low comes into view.

GBP/USD pushes higher

GBP/USD has also steadily rallied, although in this case the move higher has been in play for a week now. The price has formed higher highs and higher lows over the last few sessions, and the weakness from yesterday’s high at $1.245 appears to be turning into a fresh push higher, having held $1.24.

If this is another higher low then the price will challenge $1.245 before moving on to test the $1.252 area that marked resistance in mid-April. Beyond this, $1.265 comes into view. For the time being, the bulls are in charge; a reversal below $1.24 would challenge this, and possibly bring $1.23 and $1.225 into view.

AUD/USD rally goes on

AUD/USD continues to benefit from the ongoing recovery in risk appetite, along with equities. Indeed, since mid-March, the charts look quite similar, with a continuing rebound in risk appetite.

Yesterday saw the price push above $0.644, the high from mid-April, and this positive development has been followed up by further gains. Dips such as those over the past week have formed higher lows, with buying pressure remaining strong. So far, there is no sign of a longer-term move lower, with the next target being the $0.665 level last seen in early March.

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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