USDX (USD Index)
The bullish pressure on the U.S dollar index halted near the high. There is the possibility that the index will form a double top pattern which might lead to a bearish reversal. Nevertheless, the index trend is bullish which means shorting the U.S dollar has a higher risk. If the index trade lowers then traders will wait near the level around 107.50 for a bullish reversal.
EUR/USD
EUR/USD stick near the parity level and show no major reactions yet. The pair will continue trading sideway near the level while traders await Jackson Hole’s speech. We still expect a bearish continuation below the parity level to sweep the stop order below it. However, if the pair trade upward then it needs to close above 1.0339 to confirm 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 trading sideway near the low and show no strong bullish indication yet. The pair might attempt to move upward to target the 1.2000 – 1.2200 area. As long as there is no close above 1.2200, traders will continue to stick with a bearish scenario. A close above 1.2200 will confirm upward continuation to the target daily SMA 200.
Today’s critical levels to watch:
Support: 1.1450
Resistance: 1.2000, 1.2100, 1.2200
USD/JPY
USD/JPY trend is bullish and expected to print a new higher high. Traders will continue to stick with a bullish strategy and monitor the pair reactions near the previous swing high. If the pair start moving lower then traders will observe the pair reaction near 135.50 for a bullish bounce.
Today’s critical levels to watch:
Support: 135.19, 135.00, 131.47
Resistance: 140.00
AUD/USD
AUD/USD closed the day near the 0.7000 resistance level and will attempt to close above it. The pair might continue to stick near the level and wait for further reactions. A close above 0.7000 will confirm an upward continuation toward 0.7160 and the daily SMA 200. Without a close above both resistance levels, traders could continue to apply the bearish strategy.
Today’s critical levels to watch:
Support: 0.6820, 0.6750, 0.6700
Resistance: 0.7000, 0.7160, 0.7300