USDX (USD Index)
The decline in the U.S. dollar index following the release of inflation data yesterday did not last long. The index closed above its final opening point. Currently, the index seems to be moving up because the release of the PPI data turned out to show a higher number than expected. It appears that the market situation will still be uncertain ahead of the next Fed rate announcement. If it turns out that the inflation rate is moving up sharply again, then there will be a question of whether the Fed will stop raising interest rates or not.
EUR/USD
EUR/USD initially moved up above 1.1000 points and looks to continue its bullish trend. However, the pair reversed downward and closed near its opening level. Today, the pair rose and tested the 1.1000 points but was rejected and traded near its opening point. Consolidation between 1.0900 – 1.1000 is still ongoing at the moment and there are no changes to the strategies that traders can apply. Traders will wait near support points to enter long position opportunities.
Today’s critical levels to watch:
Support: 1.1000
Resistance: 1.1120, 1.1185, 1.1300, 1.1360
GBP/USD
GBP/USD experienced the same thing as EUR/USD where the pair moved up to the resistance point. However, this upward movement was rejected near 1.2800 yesterday and closed on the bearish side. Currently, there is a possibility that the pair will continue its decline towards point 1.2625 and traders will be waiting for a reaction near that point. If the decline continues to reach the 200 SMA then that is also an opportunity for traders.
Today’s critical levels to watch:
Support: 1.2625, 1.2200
Resistance: 1.2800, 1.3000, 1.3250, 1.3300, 1.3330
USD/JPY
USD/JPY reached 145.00 and will test the resistance point. As long as the pair does not form a higher swing high point, there is still a chance for the bearish continuation. However, if the pair manages to form a higher swing high then the rise could continue towards 147.00 and 150.00.
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 lost its bearish momentum and closed bearish yesterday. The pair is now under bearish pressure again and will test 0.6500 again. Traders will wait for the pair’s further reaction near the support point. If the pair drops below 0.6500 and forms a lower swing low then the bearish trend will continue.
Today’s critical levels to watch:
Support: 0.6500
Resistance: 0.6700, 0.6750, 0.6820, 0.7000