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FX levels to watch – EUR/USD, GBP/USD, AUD/USD

The return of US markets should see a revival in FX volatility, as both the pound and the euro look vulnerable to further declines.

EUR/USD bulls drop the ball

Further weakness is being seen this morning for EUR/USD, as the price drops back below $1.24 and heads towards support at $1.2323.

Intraday bounces have been sold so far this week, and we will see if this intensifies with the return of US traders. Below $1.2323, the price will head towards $1.2165, and then to the $1.2092 level.

GBP/USD at risk of further falls

It looks like bullish momentum has petered out here too for GBP/USD, with the drop below $1.40 raising the prospect of a move back towards $1.38, where the price recovered earlier in the month.

Below this, the 50-day simple moving average (SMA) of $1.3753, and then $1.3659, come into play. A recovery above $1.4050 would break the short-term pullback, but the $1.4150 area remains as potential resistance.

AUD/USD drifts sideways

AUD/USD's recovery from the lows of last week is intact, but it has stalled. So far this week the pair has moved sideways, faltering around $0.7940 and then bouncing from just below $0.79.

A break higher would target $0.80, and then on to $0.8076 and $0.8136. Further declines would likely find support at $0.7850 and $0.78, before heading down to $0.7750.

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