USDX (USD Index)
The U.S. dollar index has yet to show any indication of turning to bearish. The increase is still ongoing above the daily SMA 200 point and is likely to last until the announcement of the Fed’s interest rate. If the index can reverse lower and then close below the daily SMA 200 then the direction of movement can turn bearish. Traders will be waiting for a strong bearish reaction for opportunities to enter short positions.
EUR/USD
EUR/USD has reached the target of a bearish correction at the daily SMA 200 and also 1.0800. The pair will try to stay near these two points and bounce up. When a pair can produce a strong bullish reaction, it’s an opportunity for traders to enter long positions. As long as there is no lower swing low point formed below 1.06500 then the direction of the trend is still bullish.
Today’s critical levels to watch:
Support: 1.0800
Resistance: 1.0900, 1.1000, 1.1120, 1.1185, 1.1300, 1.1360
GBP/USD
GBP/USD closed below 1.2625 and there is now an opportunity for further decline towards the daily SMA 200. The pair is likely to consolidate between the daily SMA 200 and 1.2625 for now. Traders will observe the movement of the pair ahead of the Fed announcement. A close above 1.2625 could be a bullish confirmation for a move above 1.2800.
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 is moving between 145.00 – 147.00 and is still continuing its bullish movement. The pair is currently consolidating in the area with a bullish tendency. A higher swing high has formed so there is no strong confirmation of a bearish reversal yet. When a lower swing low and a lower swing high are formed, it is an early indication of a bearish reversal.
Today’s critical levels to watch:
Support: 145.00, 141.00, 140.00, 139.30, 137.70, 133.00
Resistance: 147.00
AUD/USD
AUD/USD was rejected from 0.6500 and looks to continue weakening. For now, there is no lower swing low point formed so there is a possibility for the pair to consolidate not far from last week’s low point. If the pair can go up and close above 0.6500 then there is a chance for a bullish reversal in the short term.
Today’s critical levels to watch:
Support:
Resistance: 0.6500, 0.6700, 0.6750, 0.6820, 0.7000