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EUR/USD and GBP/USD retreat as AUD/USD attempts to bounce from support

The euro and sterling continue to struggle against the US dollar, while after several days of declines the Aussie is attempting to rally.

EUR/USD tests mid-June low

EUR/USD finds itself breaking below the $1.185 low of mid-June, having entirely retraced the weak bounce of late June.

Renewed declines now bring $1.17 into view, further unwinding the bounce from the beginning of April. Little bullish price action has been seen this week, with the sellers firmly in charge.

GBP/USD continues to decline

The decline with GBP/USD has been somewhat less precipitate here, but no less relentless for that. Having returned to the mid-June low, the price finds itself back at support, and if this is broken then a drop to $1.366 comes into view.

As with EUR/USD, the buyers have been unable to maintain a toehold in terms of price action, and the sellers are still looking to push home their advantage and move the price lower. A rally back above $1.39 would help to change that view in the short term.

AUD/USD attempts to hold support

The price of AUD/USD is doing its best to bounce from the mid-June support level at $0.7473, an area that was important back in December 2020.

A move back above $0.76 would revive the bullish view, but the first step will be to hold the current support level with a daily close above $0.7473. A renewed move lower targets $0.732 in the first instance.

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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