Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose. Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose.

EUR/USD and AUD/USD fall into key support

EUR/USD and AUD/USD fall back into key support, with the reaction proving key to forthcoming sentiment.

EUR/USD falls back into range support

EUR/USD has been on the back foot of late, with the pair dropping into the $1.1235 support level.

The price has been largely rangebound in the last three-weeks, and thus this support level does bring the possibility of a short-term rebound for the pair. A decline through the $1.1222 level would bring about a more bearish outlook.

AUD/USD at risk of bearish phase after recent decline

AUD/USD has similarly dropped back not key support, with the price trading around the notable $0.709 swing low.

While we have been in a positive position of late, this decline signals a potential end to that retracement phase. Thus watch out for whether we can recover from here or drop through support as a gauge of forthcoming sentiment.

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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