USDX (USD Index)
Significant weakness occurred in the U.S. dollar index Yesterday after the release of consumer confidence figures and also the JOLTS job opening which was lower than expected. Meanwhile, this reassured the market that the Fed will be more cautious in its policy decisions next month. In addition, today there will be the release of ADP data which, if it shows a decline, will also be a negative catalyst for the U.S. dollar index.
EUR/USD
EUR/USD bounced off the daily SMA 200 and also 1.0800 with a strong momentum. The upward movement might become a starting point for a new bullish movement. If the pair can immediately continue the increase above 1.0900 then the bullish movement can continue. Entering September there is a possibility of weakness in the EUR/USD pair but in general, the trend could become bullish again depending on the reaction after the announcement of interest rates. (Traders will continue to use this opportunity to accumulate long positions near the daily SMA 200 and 1.0800.)
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 strengthened and closed again above 1.2625. This is a positive thing for the pair and it is possible that there will be a continuation of the increase towards 1.2800. Traders will now wait for the pair to consolidate between 1.2625 and 1.2800. A close below 1.2625 could bring the pair back down towards the daily SMA 200. Meanwhile, a close above 1.2800 is a confirmation of the continuation of the bullish movement.
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 rose and experienced rejection from 147.00. This is likely a bearish confirmation for a decline towards 145.00 or even 141.00. Traders will be watching the movement of the pair between 141.00 – 145.00 for now. As long as the pair can print higher swing highs and higher swing lows, a short position is still a highly speculative position.
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 is on the rise and closed near last week’s high. The pair is getting a breath of fresh air and will try to make a close above 0.6500. If the pair could close above 0.6500 this week, then it will be a bullish catalyst for next month’s trading. For now, traders will be watching the weekly close for further confirmation.
Today’s critical levels to watch:
Support:
Resistance: 0.6500, 0.6700, 0.6750, 0.6820, 0.7000