USDX (USD Index)
The U.S. dollar index is seen starting to move down before today’s announcement of interest rates by the Fed. If the index moves down sharply and continues its bearish movement then the 100.00 level is a downside target. If the index moves down from this point it will form a lower swing high point which eliminates the chance of daily SMA 200 retest. However, if the index still moves up and closes above the daily SMA 200 then the situation might turn bullish again.
EUR/USD
EUR/USD is moving up and testing the current 1.0800 level. The pair has the possibility to continue its bullish trend aiming for a higher swing high. Traders will wait for the pair’s reaction after today’s announcement of interest rates by the Fed. Will the bullish trend resume? Or will the bearish correction continue with the daily SMA 200 as the downside target?
Today’s critical levels to watch:
Support: 1.0650, 1.0339
Resistance: 1.0800, 1.0900, 1.1000
GBP/USD
GBP/USD closed near the 1.2625 level and is now seen continuing its upward movement. As previously written, if the pair continues its bullish movement then the 1.2800 level is the next bullish target. Conversely, if the pair bounces down and starts a bearish correction then the 1.2000 – 1.2200 area and the daily SMA 200 are places where traders can add 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 up from 139.30 and looks ready to continue its bullish movement. The possibility that the Fed will not raise interest rates encourages the strengthening of the USD while the JPY will still be waiting for a reaction from the BOJ. The further decline in the inflation rate may continue to exert bullish pressure on the USD/JPY pair even though the U.S. dollar index is likely to weaken.
Today’s critical levels to watch:
Support: 133.00, 130.00, 125.00
Resistance: 137.70
AUD/USD
AUD/USD continued its upward movement and immediately tested 0.6820. The pair has the opportunity to break above 0.6820 and confirm the trend change to bullish. However, if it turns out that the pair is experiencing rejection, fails to make the swing high point higher, and closes below the daily SMA 200 then there is a chance for bearish continuation.
Today’s critical levels to watch:
Support: 0.6750, 0.6700, 0.6500, 0.6000
Resistance: 0.6820, 0.7000