USDX (USD Index)
U.S dollar index back to its bullish track after the bounce from 105.00 – 105.50 area. The index will continue the bullish movement to target a new higher high now. Traders seem betting on rate hikes and higher inflation rates in the coming reports. Under the current situation, traders will continue to hold long positions in the U.S dollar while waiting for the next update.
We might see a rally before the news and sell the news reactions after the actual data is released.
EUR/USD
EUR/USD resume the bearish trend after the rejection from the 1.0339 resistance level. The pair is trading near the parity level and soon will test. Nothing out of expectation yet, we think a breakout below the parity level will happen to trigger stop orders. After the stop level is triggered then we might see accumulation before a new bullish trend started.
Today’s critical levels to watch:
Support: 1.0000
Resistance: 1.0339, 1.0650, 1.0800, 1.0900
GBP/USD
GBP/USD follows the EUR/USD weakness and currently trading near the previous swing low. We might see a new lower low formed on the chart and the pair might continue moving lower. Will the pair reach parity against the U.S dollar as experienced by EUR/USD? Under the current situation, traders will wait for a bullish correction toward the resistance level to enter short positions.
Today’s critical levels to watch:
Support: 1.2000, 1.1450
Resistance: 1.2100, 1.2200
USD/JPY
USD/JPY trading upward, continuing the bullish trend to target a new higher high. There is no lower low printed in the previous bearish test which means the bullish trend is still intact. The pair need to move higher and print a new higher high to ensure the continuation of the bullish trend.
Today’s critical levels to watch:
Support: 131.47
Resistance: 135.00, 135.19
AUD/USD
AUD/USD got rejected from the level near daily SMA 200 and 0.7160. The pair currently trading below 0.7000 and set to test the 0.6820 support level. The overall trend is bearish with a lower high printed in the previous resistance test. A new lower low will confirm the continuation of a bearish trend.
Today’s critical levels to watch:
Support: 0.6820, 0.6750, 0.6700
Resistance: 0.7000, 0.7160, 0.7300