USDX (USD Index)
U.S dollar index tested the 100.00 handles and stage a bullish rally after the test. The index formed a new higher swing high and is expected to continue the bullish trend. There is no reason for traders to start entering short positions in the U.S dollar. If the index makes a bearish correction then traders will wait near support levels for a chance to enter long positions.
EUR/USD
EUR/USD fell below the 1.0800 support level and is expected to continue the bearish movement toward the 1.0650 support level. The overall trend will continue to be bearish and traders will wait for a bullish correction for a chance to enter short positions near a resistance level. Without a new higher high on the chart, it is better to avoid taking long positions.
Today’s critical levels to watch:
Support: 1.0650
Resistance: 1.0800, 1.0900
GBP/USD
GBP/USD breakout and close below the 1.3000 support level. The pair continues moving lower today below the 1.2800 support level. If there is no change to the current bearish pressure, the pair is expected to target the 1.2625 support level next. On the upside, 1.3000 will become the resistance level to watch when a bullish correction happens.
Today Critical level to watch:
Support: 1.2625
Resistance: 1.3000, 1.3125, 1.3250
USD/JPY
USD/JPY hanging near the high and starting a consolidation. The pair might continue moving upward with or without a bearish correction. If the pair start a bearish correction then traders could wait near the trendline or the level around 125.00 for a chance to enter long positions. Meanwhile, it is better to avoid short positions until the pair make a lower swing high and lower swing low.
Today’s critical levels to watch:
Support: 126.00, 125.00, 120.00
Resistance: 130.00
AUD/USD
AUD/USD bearish reversal near the orange box area has a more bearish leg. The pair fell below the daily SMA 200 and now reached the 0.7160 support level. The situation is strongly bearish and might extend the bearish movement toward 0.70000. If the pair fails to close the week above the daily SMA 200 then traders might want to scale out of long positions.
Today critical levels to watch:
Support: 0.7160, 0.7000
Resistance: 0.7300, 0.7330