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EUR/USD, GBP/USD and AUD/USD weaken on dollar strength

EUR/USD, GBP/USD and AUD/USD start to roll over after market weakness provides short-term gains for the dollar.

EUR/USD rebounds into key resistance zone

EUR/USD has been on the rise since the Wednesday lows, with the pair pushing into the 76.4% Fibonacci retracement level.

The key here is that the pair would need to break through the $1.1843 swing-high to signal an end to the recent pullback. However, given the mid-sized retracement seen thus far, there is still another chance of a move lower from this Fibonacci level. As such, the reaction to this Fibonacci level will be crucial in determining the outlook from here.

GBP/USD rebound starts to falter after early gains

GBP/USD gains seen overnight are starting to ease back as the pair gives back some of the gains seen throughout much of November.

Given the mid-sized pullback thus far, there is a good chance we could see further downside from here. The short-term trend of lower highs and lows does point towards this current rise being a potential precursor to further downside. As such, this period of weakness is likely to continue until we see a break through the prior swing high (currently $1.3228).

AUD/USD rolls over after recent resurgence

AUD/USD has started to break lower after a strong run at the beginning of the month.

The decline below $0.7252 brings about a bearish reversal signal for the near term, with the price subsequently trading within a descending channel. A break back up through the prior high of $0.7318 would bring about a fresh bullish signal. However, until then it looks likely we will see further short-term gains to give back some of those recent gains.

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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