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FX levels to watch: EUR/USD, GBP/USD and AUD/USD

The dollar has revived, putting pressure on other currencies around the globe.

EUR/USD fighting to hold $1.13

Once again the sellers have driven EUR/USD back towards $1.13, and once again the area continues to hold as support. This narrowing range likely signals that significant volatility is ahead.

A close above $1.14 would be needed to suggest that a more bullish view has taken over. Meanwhile, the sellers have to break below the $1.125-$1.13 area to spark a deeper retracement.

GBP/USD gains capped by resistance

Here too the lows of GBP/USD of the past few days continue to hold, with $1.27 in this case preventing further downside.

However, we continue to see resistance at each push towards $1.28, with lower highs still the result, maintaining the bearish view for the time being.

AUD/USD uptrend still intact

The rally off the lows of October is still intact, and the retracement over the past few days has pushed the price of AUD/USD back towards the $0.72 area.

Higher lows are still just about in evidence, so a bounce may develop from here. A move below the 50-day simple moving average (SMA) of $0.7185 would be a bearish development and raise the prospect of declines to $0.71 and $0.702.

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