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European currencies maintain declines and head into key support

European currencies lead the losses, with the AUD/USD challenging a key area of resistance after breaking from downtrend.

EUR/USD moves within touching distance of key support level

EUR/USD has continued its downtrend, following on from a rally into a confluence of resistance that includes an inside trendline and the 200-day simple moving average (SMA).

The wider bearish trend points towards the pair moving into and below the $1.1111 low. Should such a move occur, it would signal a continuation of that wider trend, with another upward retracement likely to come back into play before long.

GBP/USD downtrend continues as price moves towards key low

GBP/USD has continued its downtrend, with the post-resignation bounce proving fleeting at best. We are now within touching distance of the low of $1.2605 seen prior to Theresa May’s resignation.

A break below that level looks likely and this would signal a continuation of the downtrend in play over recent weeks. Further downside does seem likely, and only with a break through $1.2748 would the picture look anything other than bearish.

AUD/USD consolidation continues as price reaches key resistance

AUD/USD remains within a narrow band of consolidation following on from a rally into the $0.6936 swing high. That level represents the area of resistance that is being challenged today, with a break and close above there pointing towards further upside to come.

However, until that break occurs, there is a good chance we will see this consolidation phase persist.

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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