USDX (USD Index)
Last week, the U.S dollar index stage a bullish rally and close the week on the bullish side. The market seems weighing on higher interest rates after the release of U.S job data. This week, the market will focus on inflation data once again. If the inflation numbers continue to increase then we might see the U.S dollar index continue the upward climb.
EUR/USD
EUR/USD is mostly sideways between the parity and 1.0339 level. The pair might continue trading sideways until the release of major data. This week’s inflation data might become a catalyst for a major movement in EUR/USD. Will the pair resume the bearish movement below parity or closed above 1.0339 to continue the bullish correction?
Today’s critical levels to watch:
Support: 1.0000
Resistance: 1.0339, 1.0650, 1.0800, 1.0900
GBP/USD
GBP/USD return inside the 1.2000 – 1.2200 area which means the consolidation inside the area will continue. Similar to the previous strategy, traders will apply a ranging strategy until the breakout happen. We think the pair might break out lower and continue the bearish trend. However, if the pair make a close above 1.2200 and maintain the level until the end of the week then we might see a continuation of upward movement.
Today’s critical levels to watch:
Support: 1.2000, 1.1450
Resistance: 1.2100, 1.2200
USD/JPY
USD/JPY bounced from the 161.00 support level and continue the upward movement. The pair is expected to resume the bullish trend and target a new higher high. Traders will stick with long positions as long as the pair continue printing a new higher high and higher low.
Today’s critical levels to watch:
Support: 131.47
Resistance: 135.00, 135.19
AUD/USD
AUD/USD got rejected from the 0.7000 level last week. However, there is no bearish continuation yet in this week’s trading session. Traders might prompt to stay sidelined this week before the release of U.S inflation data. If the inflation number continues to climb then traders will expect further weakness in the U.S dollar counterpart.
Today’s critical levels to watch:
Support: 0.6820, 0.6750, 0.6700
Resistance: 0.7000, 0.7160, 0.7300