USDX (USD Index)
The bear was crushed in the U.S. dollar index today as the index returned above 103.82 with strong bullish pressure. The current bullish movement was triggered by the fear that the banking sector in Europe collapsing after what happened in U.S. European banking stocks stopped trading after a massive drop caused by trouble in Credit Suisse. If the bullish pressure continues to add up then the U.S. dollar index will continue moving upward to target the daily SMA 200.
EUR/USD
EUR/USD returned below the 1.0650 level again today as fear spread in European banking sectors. The pair might resume the bearish trend and continue down to target 1.0339 and daily SMA 200. Traders will monitor the pair’s closing level at the end of the day to determine the pair’s next direction. A close above 1.0650 will cancel the current bearish outlook.
Today’s critical levels to watch:
Support: 1.0650, 1.0339, 1.0000, 0.9500
Resistance: 1.0800, 1.0900, 1.1000
GBP/USD
GBP/USD failed to breakout and close above 1.2200 and the pair currently undergoes bearish pressure. If the pair close below the daily SMA 200 or the 1.2000 level then the bearish movement will continue. On the lower side, 1.1450 will become the bearish target to watch when a bearish continuation happens.
Today’s critical levels to watch:
Support: 1.1450
Resistance: 1.2000, 1.2100, 1.2200
USD/JPY
USD/JPY is mostly lower and continues the bearish movement toward the green box area today. The pair might move lower and attempt to close below the area. If a bearish close below the area happens with strong momentum then the pair will continue the bearish trend. Traders who have short positions from the daily SMA 200 will continue to hold the positions while moving stop order above today’s high.
Today’s critical levels to watch:
Support: 133.00, 130.00, 125.00
Resistance: 137.70
AUD/USD
AUD/USD get rejected from the 0.6700 resistance level today and might resume the bearish movement to target the 0.6500 support level. On the upside, a close above daily SMA 200 or 0.6820 will cancel the current bearish outlook and bring the pair back to bullish trend. Under current situation, we think the situation will stay bearish and depend on the Fed’s decision next week.
Today’s critical levels to watch:
Support: 0.6750, 0.6700, 0.6500, 0.6000
Resistance: 0.6820, 0.7000