USDX (USD Index)
U.S. dollar index strengthen today and currently trading above last week’s high. The bullish movement seems to be continuing with the 103.50 and daily SMA 200 as the upward target. Traders will be waiting for the index to reach resistance levels and produce a bearish reaction for opportunities to enter short positions in the U.S. dollar.
EUR/USD
EUR/USD dropped below 1.1000 but not with strong bearish momentum. The pair is likely to consolidate near 1.1000 for now and wait for further developments. U.S. inflation data and employment data will be driving of the pair’s movement this week.
Today’s critical levels to watch:
Support: 1.1000
Resistance: 1.1120, 1.1185, 1.1300, 1.1360
GBP/USD
GBP/USD is again experiencing bearish pressure below the 1.2800 point. The pair has the possibility to move down towards 1.2625 and traders will now continue to wait for the reaction at the support points. 1.2625 – 1.2800 area can be a place where traders consider entering long positions.
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 continues its bullish movement towards 145.00. The pair will try to form a higher swing high point and confirm the continuation of the bullish trend. However, fundamentally there is a change in the situation and there is a possibility for the pair to reverse downward drastically. For now, traders will continue to assume the trend is still bullish with higher swing highs and higher swing lows formed.
Today’s critical levels to watch:
Support: 141.00, 140.00, 139.30, 137.70, 133.00
Resistance: 145.00, 147.00
AUD/USD
AUD/USD experienced bearish pressure again and fell below 0.6700 and the daily SMA 200. This bearish trend will continue for now and there are opportunities for a move towards 0.6500. However, no lower swing low has been formed so there is no confirmation yet. If the pair turns upside and closes above the daily SMA 200 at the end of the week then the direction of movement could turn bullish.
Today’s critical levels to watch:
Support: 0.6750, 0.6700
Resistance: 0.6820, 0.7000