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EUR/USD and AUD/USD hard hit, with GBP/USD attempting to hold its ground

EUR/USD and AUD/USD suffered sharp losses yesterday, with a stronger dollar weighing on GBP/USD as well.

EUR/USD knocked back to three-week low

Strong US data yesterday put the dollar on the front foot once again, pushing EUR/USD to its lowest level in three weeks.

Buyers will want to push the price back above $1.215 to recover a short-term bullish view, while sellers are hoping that any bounce will be short-lived in order to open the way to further downside, targeting $1.20 in the first instance.

GBP/USD stumbles to $1.41

With the GBP/USD, the dollar found some strength against sterling too yesterday.

However, the downside seems to have slowed as it reaches $1.41, with any potential bounce needing to clear $1.42 to avoid reinforcing the lower high from yesterday.

AUD/USD drops to seven-week low

AUD/USD was shaken out of its complacency to a degree by yesterday’s resurgent US dollar, dropping below $0.77 for the first time since mid-April.

It has found support for now at $0.765, but with lower highs in place since the middle of May a move above $0.775 is needed to restore a more bullish view.

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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