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EUR/USD, GBP/USD and AUD/USD likely to drift lower

EUR/USD, GBP/USD and AUD/USD look set for further downside after recent period of weakness.

EUR/USD continues to decline after double top formation

EUR/USD has been on the slide throughout November thus far, with the pair completing a double top formation in the process.

That decline looks likely to persist until we see otherwise, and thus the consolidation we have seen overnight is likely to resolve with another leg lower. A break through the $1.1043 swing high would be required to negate this bearish short-term outlook.

GBP/USD likely to drift lower despite short-term gains

GBP/USD has been on the rise this week, following on from a period of weakness seen in the first week of November.

However, this rebound looks likely to be a short-term phenomenon before we drift lower once more to continue the trend of the past month. A break through $1.2976 would be required to bring about a wider bullish picture for the pair. Until then, the bears look likely to return before long.

AUD/USD moving lower from trendline confluence

AUD/USD has been on the slide since rallying into a confluence of trendline resistance around the turn of the month.

These declines are likely to persist for now, yet the extended nature of this decline does point towards some sort of upward retracement coming into play at some point. With that in mind, further downside looks likely, unless we see a break through the near-term resistance level of $0.6857.

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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