USDX (USD Index)
U.S dollar index building more bullish pressure and soon will challenge its previous swing high. A new higher high printed on the chart means the bullish trend will continue. This week, traders will focus their attention on Jerome Powell’s speech in Jackson Hole. Depending on the market reactions, we might see a short-term pullback in the index after the previous swing high test.
EUR/USD
EUR/USD closed below the parity level the first time. The pair continue under bearish pressure which means it is better to stay sidelined for now. If the pair could climb and close above the parity level with strong bullish momentum then we might see a new rally to attempt a bullish reversal.
Today’s critical levels to watch:
Support:
Resistance: 1.0000, 1.0339, 1.0650, 1.0800, 1.0900
GBP/USD
GBP/USD printed a new lower low following the EUR/USD bearish path. Will the pair continue the bearish movement to target parity level too as seen in EUR/USD? At the current time, traders will wait for a bullish correction for a chance to enter short positions near resistance levels. On the upside, a close above 1.2200 might cancel the bearish outlook.
Today’s critical levels to watch:
Support: 1.1450
Resistance: 1.2000, 1.2100, 1.2200
USD/JPY
USD/JPY continues building bullish pressure without a weakness sign. The pair soon will test the previous swing high and attempt to print a new higher high. The pair movement might mirror the U.S dollar index movement for now. Traders will observe the pair reactions near the previous swing high level.
Today’s critical levels to watch:
Support: 135.19, 135.00, 131.47
Resistance: 140.00
AUD/USD
AUD/USD is mostly lower and set to target the 0.6820 support level. There is no change to the bearish outlook yet as the pair print a new lower high on the chart. If the pair could print a new lower low below the 0.6700 level then traders will expect the bearish trend to continue. Despite the situation, there is potential that the area between 0.6700 – 0.6820 might become a place where a higher low printed.
Today’s critical levels to watch:
Support: 0.6820, 0.6750, 0.6700
Resistance: 0.7000, 0.7160, 0.7300