USDX (USD Index)
The U.S. dollar index initially moved sharply lower in yesterday’s trading but the Fed’s comments managed to stem the bearish pressure and the index slightly lifted from its lows. Today it looks like the index is trying to move up but it can be said that this increase is only temporary. Even though the index may continue to rise, in terms of the long-term trend, the trend of the index is still bearish.
The Fed did not raise interest rates yesterday but indicated that there are 2 more hikes remaining this year. This announcement might be a word to keep the U.S. dollar index from weakening sharply. In terms of economic data, the inflation rate continues to fall more than expected and this is a strong reason that the Fed will not be able to raise interest rates again. Because of this, traders are still advised to wait for opportunities to enter short positions in the U.S. dollar.
EUR/USD
EUR/USD closed above 1.0800 and looks to try to continue strengthening towards 1.0900 and 1.1000. There is a possibility for the pair to move down to retest 1.0650 and form a double-bottom pattern. But it is also possible for the pair to immediately move up and continue its bullish trend from the current point. Traders who already have long positions will maintain those positions and use a bearish correction to add more positions.
Today’s critical levels to watch:
Support: 1.0650, 1.0339
Resistance: 1.0800, 1.0900, 1.1000
GBP/USD
GBP/USD made a close above 1.2625 and also made a higher swing high. The bullish movement of the pair will continue with the 1.2800 level as the next bullish target. When the 1.2800 level is reached and a bearish correction occurs, traders can use the 1.2625 level as a place to enter long positions. It is better to avoid short positions as the pair currently continuing printing new higher high and higher low.
Today’s critical levels to watch:
Support: 1.2625, 1.2200, 1.2100
Resistance: 1.2800
USD/JPY
USD/JPY is continuing its gains with strong bullish momentum today. The pair forms a higher swing high and higher swing low to confirm that the bullish trend will continue. Traders can only wait for a bearish correction to enter more long positions. The 145.00 – 147.00 area will be the next bullish target to watch.
Today’s critical levels to watch:
Support: 140.00, 139.30, 137.70, 133.00
Resistance: 145.00, 147.00
AUD/USD
AUD/USD continues to exert bullish pressure at 0.6820 and will try to close above it. A close above 0.6820 will confirm the continuation of the pair’s bullish trend. A bearish correction is possible up to the 0.6700 level or daily SMA 200. Traders will take advantage of this situation for opportunities to enter long positions.
Today’s critical levels to watch:
Support: 0.6750, 0.6700, 0.6500, 0.6000
Resistance: 0.6820, 0.7000