USDX (USD Index)
U.S dollar index is under heavy bearish pressure today after lower than expected CPI number release. The CPI data comes out at 7.1% vs. the 7.3% expectation. Traders seem going heavy on the U.S. dollar short just before the Fed FOMC meeting tomorrow. At the current time, the index has printed a new lower low but not significantly below the previous swing low. If the index bounces back and recovers from the bearish movement then we could see the surprise in tomorrow’s FOMC meeting.
If the index closes above the daily SMA 200 after the FOMC meeting then traders will prepare for a bullish continuation in the U.S. dollar index.
EUR/USD
EUR/USD reached the 1.0650 resistance level as mentioned before. The pair’s upward movement has strong bullish momentum but it is right before tomorrow’s FOMC meeting. Traders might want to stay cautious as the situation could change drastically depending on the market reactions toward the Fed decision. If the pair get rejected with strong bearish reactions then it could move lower to target the daily SMA 200 or 1.0339 support level. No confirmation yet on the next direction, tomorrow will give us a better outlook on where the pair will move next.
Today’s critical levels to watch:
Support: 1.0339, 1.0000, 0.9500
Resistance: 1.0650
GBP/USD
GBP/USD launch upward today, extending the bullish movement above 1.2200. The pair might continue the bullish movement toward the 1.2625 and 1.2800 resistance levels. However, if the pair makes a bearish reversal at the current level and manage to close below the daily SMA 200 or 1.2000 then the bearish trend is set to continue. Traders will monitor closely the market reactions after the Fed FOMC meeting tomorrow.
Today’s critical levels to watch:
Support: 1.2100, 1.2000, 1.1450, 1.0500, 1.0000
Resistance: 1.2200
USD/JPY
USD/JPY pushed lower from the 137.70 level and reached the daily SMA 200 today. Despite the bearish pressure, the pair manage to maintain the position between the daily SMA 200 and 137.70. Without a breakout and close below the daily SMA 200 or a new lower low then there is no confirmation yet for a bearish continuation. Traders will continue to monitor the pair movement between daily SMA 200 and 137.70.
Today’s critical levels to watch:
Support: 139.30, 135.19, 135.00
Resistance: 140.00, 145.00, 150.00
AUD/USD
AUD/USD traded upward and reached the level near the daily SMA 200. The pair moving upward with strong bullish momentum and might extend the upward movement toward 0.7000. The long-term trend will not change yet unless the pair could climb above 0.7000 and print a new higher high. Traders will monitor the reactions near the daily SMA 200 tomorrow. If the pair show a major bearish rejection from the average then traders could enter short positions.
Today’s critical levels to watch:
Support: 0.6500, 0.6000
Resistance: 0.6700, 0.6750, 0.6820, 0.7000