USDX (USD Index)
Yesterday, the Fed officially announced tapering which resulted in a bearish reaction on the U.S dollar index. It seems the market has “priced in” the tapering and assessing whether the Fed will do it aggressively or not. Despite the tapering confirmation, the Fed decide to be flexible on the reduction amount while monitoring more economic data.
Today, the index makes a major bullish movement and currently trading above 94.30. If the index closes above the resistance level then we will expect continuation toward 95.00.
EUR/USD
EUR/USD managed to close above the 1.1580 support level yesterday. However, the pair is currently under bearish pressure and trade below the level. Under the current situation, the pair might continue lower to target 1.1500 support level and next 1.1360. Traders will continue waiting for a bullish correction toward 1.1710 to enter short positions.
Today critical levels to watch:
Support: 1.1500, 1.1360
Resistance: 1.1580, 1.1710, 1.1820, 1.2000, 1.2070
GBP/USD
GBP/USD broke below the 1.3600 support level with strong bearish momentum. The pair is set to continue moving bearishly and attempt breakout below 1.3450. If the pair breakout and close below 1.3450 then the long-term bearish trend will continue. Traders might want to avoid long positions unless the pair could make a close above the daily SMA 200.
Today Critical level to watch:
Support: 1.3600, 1.3450
Resistance: 1.3835, 1.4000
USD/JPY
USD/JPY stick near the 114.50 without major reaction yet. The pair might continue its ranging movement and make a major movement with strong momentum after the consolidation. If the pair trade lower then 112.00 support level is the place traders could consider long positions on bullish reaction.
Today critical levels to watch:
Support: 113.00, 112.00
Resistance: 114.50, 115.00
AUD/USD
AUD/USD tested the bottom of the orange box and produced a bearish continuation today. The pair is trading lower and set to target the 0.7300 – 0.7330 area. Without any bullish reaction from the area, traders will continue to avoid long positions as the trend is bearish below the daily SMA 200.
Today critical levels to watch:
Support: 0.7450, 0.7330, 0.7300
Resistance: 0.7500, 0.7550