USDX (USD Index)
The weakening occurred in the U.S. dollar index today after the release of CPI inflation data which showed a further decline in inflation than expected. Market participants are more optimistic now with the possibility that the Fed will not raise interest rates this week. If the dollar index starts its bearish movement then the 100.00 level is a downside target. Despite the situation, traders will prepare for a possible surprise where the index reverse and resume bullish movement towards the daily SMA 200.
EUR/USD
EUR/USD continues to move up away from 1.0650 and has tested 1.0800 today. The pair has the opportunity to continue its long-term bullish trend to form even higher swing highs. However, if the pair is experiencing bearish pressure then the 1.0650 level and the daily SMA 200 is where traders will be prepared to add to their long positions.
Today’s critical levels to watch:
Support: 1.0650, 1.0339
Resistance: 1.0800, 1.0900, 1.1000
GBP/USD
GBP/USD moved up to reach 1.2625 today and will try to continue its bullish movement. When the resistance at 1.2625 is broken, the pair can move towards 1.2800. The Fed’s meeting this week will be the key to confirming the direction of the pair’s next move. If the pair is moving lower then the 1.2000 – 1.2200 area and the daily SMA 200 are places where traders could add to long positions.
Today’s critical levels to watch:
Support: 1.2200, 1.2100, 1.2000, 1.1450
Resistance: 1.2625, 1.2800
USD/JPY
USD/JPY bounced from 139.30 today and looks to move up past yesterday’s high. The pair will try to continue its bullish movement forming higher swing highs and higher swing lows. As long as the pair is above the SMA 200, the condition of the pair will continue to be bullish. A close below the daily SMA 200 and a new lower low will cancel the current bullish outlook.
Today’s critical levels to watch:
Support: 133.00, 130.00, 125.00
Resistance: 137.70
AUD/USD
AUD/USD is continuing its advance above the daily SMA 200 and will try to form a new higher swing high. When the pair can make higher swing highs or close above 0.6820 with strong bullish momentum then the bullish trend can continue. Conversely, if the pair goes down again without forming a higher swing high then the pair might return to its bearish track.
Today’s critical levels to watch:
Support: 0.6500, 0.6000
Resistance: 0.6700, 0.6750, 0.6820, 0.7000