USDX (USD Index)
U.S dollar index staged a major bullish reaction yesterday which surpass two days’ candlestick high. The index might continue the bullish movement and target a new high. At the current time, traders will continue to avoid short positions as the trend is expected to continue bullish. Yesterday, U.S inflation data was released worse than expected. However, the inflation numbers show a declining number which might indicate inflation is peaking.
If the next inflation number continues to decline then we might see the U.S dollar index start a new bearish trend.
EUR/USD
EUR/USD pushed lower and closed below the parity level. It might indicate a bearish continuation to target a new lower low. Traders who have short positions will continue to hold the positions with a tight stop for now. On the upside, 1.0339 is the bullish target where traders could enter short positions.
Today’s critical levels to watch:
Support: 1.0000
Resistance: 1.0339
GBP/USD
GBP/USD pushed lower and closed near the 1.1450 support level. The pair might resume the bearish movement and print a new lower low. However, there is no bearish continuation yet which means a bullish reversal could happen. Traders might want to prepare for next week’s FOMC meeting where a bullish correction might happen before the announcement.
Today’s critical levels to watch:
Support: 1.1450
Resistance: 1.2000, 1.2100, 1.2200
USD/JPY
USD/JPY hanging near the high and set to continue its bullish trend to print a new higher high. As long as the pair print a new higher high and higher low then traders will avoid entering short positions. It is better to wait for a bearish correction to enter long positions near a support level.
Today’s critical levels to watch:
Support: 140.00, 139.30, 135.19, 135.00
Resistance:
AUD/USD
AUD/USD closed lower below the 0.6750 support level. The pair continue the bearish movement today and is set to test the 0.6700 support level. Will a new lower low be printed on the chart and confirm a bearish continuation? Alternatively, will the pair bounce and start a new bullish leg again to target 0.7000 and 0.7160?
Today’s critical levels to watch:
Support: 0.6820, 0.6750, 0.6700
Resistance: 0.7000, 0.7160, 0.7300