USDX (USD Index)
The bullish pressure of the U.S. dollar index has not receded as the index keeps testing the 103.82 resistance level. If the index breaks higher, it will continue moving upward to target the daily SMA 200. On the other hand, if the index gets rejected at the end of the week then we might see a bearish continuation to target the 100.00 level. We think the bearish movement will continue in the long term but traders might want to prepare for an upward continuation to the daily SMA 200 too.
EUR/USD
EUR/USD is hanging inside the 1.0650 – 1.0800 area and currently pressuring to the downside. No change to the ranging situation yet and traders will wait for the close outside of the range. If the pair closes lower then it might continue to target the daily SMA 200 or 1.0339. On the other hand, the bullish breakout will open the path to retest the 1.1000 resistance level.
Today’s critical levels to watch:
Support: 1.0800, 1.0650, 1.0339, 1.0000, 0.9500
Resistance: 1.0900, 1.1000
GBP/USD
GBP/USD continues trading inside the 1.2000 – 1.2200 area and is currently under bearish pressure. The pair will attempt to break out and print a new lower low to continue the bearish trend. Without any breakout then the consolidation between 1.2000 – 1.2200 will continue. We favor a bullish breakout and continuation to target the 1.2800 resistance level. However, if a new lower low is printed then it is time to close long positions.
Today’s critical levels to watch:
Support: 1.2000, 1.1450
Resistance: 1.2100, 1.2200
USD/JPY
USD/JPY is trading above the green box area and will attempt to continue the bullish movement toward the daily SMA 200. The overall trend of the pair is bearish and a retest on the daily SMA 200 is a chance for traders to enter short positions. If the pair reverse the direction and close below the green box area then it is the confirmation for bearish continuation.
Today’s critical levels to watch:
Support: 130.00, 125.00
Resistance: 133.00, 137.70
AUD/USD
AUD/USD rejection from 0.7000 gaining more bearish momentum and soon will reach the 0.6820 support level. We suggest traders to wait near the 0.6820 and daily SMA 200 for the chance to enter long positions. On the upside, the pair needs to close above the 0.7160 resistance level to confirm long-term bullish continuation.
Today’s critical levels to watch:
Support: 0.6750, 0.6700, 0.6500, 0.6000
Resistance: 0.6820, 0.7000