USDX (USD Index)
The U.S. dollar index appears to have increased in today’s trading but is likely to continue to trade flat ahead of the Fed’s interest rate announcement next week. Traders will be waiting for the index to move up toward the resistance point for opportunities to enter short positions when a bearish reaction occurs. In terms of trend, the direction of movement of the index will be bearish as the chance of the Fed continue raising interest rates is diminishing given the declining inflation rate.
EUR/USD
EUR/USD pushed down in today’s trading to a support level of 1.1185. The pair has the possibility to continue the bearish correction towards 1.1120 or 1.1000. If the pair can reach these support points then traders can use the opportunity to enter long positions when there is a bullish reaction. As long as the pair continues to form higher swing highs and higher swing lows, the trend will continue to be bullish.
Today’s critical levels to watch:
Support: 1.1185, 1.1120, 1.1000
Resistance: 1.1300, 1.1360
GBP/USD
GBP/USD dropped below 1.3000 and will now target 1.2800. The pair is carrying out a bearish correction for now and traders will use this opportunity to enter long positions when there is a bullish reaction at the support point. The next bullish target is the 1.3250 – 1.3300 area after the bearish correction is completed.
Today’s critical levels to watch:
Support: 1.2800, 1.2625, 1.2200
Resistance: 1.3000, 1.3250, 1.3300, 1.3330
USD/JPY
USD/JPY gave a bullish reaction and moved up above 139.30 today. The pair is expected to move within the range of 137.70 – 141.00 until the next direction is determined. In next week’s trading, it is likely that the pair will move with great momentum after the Fed’s announcement. If the pair drops below its daily SMA 200 and forms a lower swing low then the bearish trend may continue.
Today’s critical levels to watch:
Support: 139.30, 137.70, 133.00
Resistance: 140.00, 141.00, 145.00, 147.00
AUD/USD
AUD/USD continued its weakness in today’s trading and reached 0.6750. The pair still has room for a further bearish correction towards the point 0.6700 and the daily SMA 200. Traders will monitor the reaction of the pair near the support points for opportunities for long positions when a bullish reaction occurs. The key to continuing the next bullish movement is the formation of a higher swing high point.
Today’s critical levels to watch:
Support: 0.6820, 0.6750, 0.6700
Resistance: 0.7000