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EUR/USD, GBP/USD and AUD/USD all weakening

Dollar strength is putting pressure on key currency pairs, pointing towards renewed weakness against the greenback for the euro, sterling and the Aussie.

EUR/USD moves down from lower high

EUR/USD is heading lower from trendline resistance, after recording a second lower high at $1.22, following on from the $1.225 lower high at the beginning of last week.

A resumption of the downward move targets $1.21 and lower, while a more bullish view requires the price to rally back above $1.22 and then make progress towards $1.225.

GBP/USD heads back to $1.41

Further weakness for the GBP/USD has seen the price drop back towards $1.41, the crucial area of support over the past three weeks.

If this is broken then a more bearish view may begin to prevail, although there is more potential support around $1.4013. A revival above $1.42 puts the buyers back in charge.

AUD/USD turns lower

Since mid-May lower highs have prevailed here with AUD/USD, and with the price turning back down from $0.776 it looks like a new leg lower could be in play.

This would bring $0.766 into view. A more bullish view would need the price to rebound above $0.77 and clear the two previous lower highs.

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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