USDX (USD Index)
The U.S. dollar index strengthened to 103.50. This strengthening is an ongoing bullish correction and traders will wait for a bearish reaction near the resistance point. When a bearish reaction occurs, traders can enter a short position in the U.S. dollar to follow the direction of the bearish trend. Traders can wait at 103.50 and the daily SMA 200 for now. However, if the index manages to rise further and forms a higher swing high point, the bearish trend will be delayed.
EUR/USD
EUR/USD bounced down from 1.1000 and briefly reached 1.0900. The pair is holding above the 1.0900 level and waiting for the bullish momentum to continue rising. A close above 1.1000 will be a strong signal for the continuation of the bullish trend. For now, consolidation can take place between 1.0900 – 1.1000 and traders will wait for a movement out of the area to confirm the direction of the next movement.
Today’s critical levels to watch:
Support: 1.0900, 1.0800, 1.0650, 1.0500
Resistance: 1.1000, 1.1120, 1.1185, 1.1300, 1.1360
GBP/USD
GBP/USD is still continuing yesterday’s bearish closing and is getting closer to the daily SMA 200 point. As previously written, traders can use the area between the daily SMA 200 and 1.2800 to enter long positions. However, traders should wait for the pair to lose its bearish momentum before entering a position. Currently, the fundamental situation of unrest in England still greatly influences the pair. The pair could test levels below the daily SMA 200 before moving flat.
Today’s critical levels to watch:
Support: 1.2625, 1.2200, 1.2100, 1.2000
Resistance: 1.2800, 1.3000
USD/JPY
USD/JPY is starting to move up after consecutive declines that have occurred in recent weeks. The pair has the opportunity to move up towards 150.00, 151.80, and daily SMA 200. Because the trend has turned bearish, traders will take advantage of the rise in the pair as an opportunity to enter short positions at resistance points. Long positions are only considered if traders want to speculate with higher risk than short positions.
Today’s critical levels to watch:
Support: 142.00, 141.00
Resistance: 145.00, 147.00, 150.00, 155.00
AUD/USD
AUD/USD bounced up from 0.6500 and is seen moving closer to the daily SMA 200. If the pair can rise and close above the daily SMA 200 then there is an opportunity for the continuation of the bullish trend. However, if the pair bounces down sharply then consolidation between 0.6500 and daily SMA 200 will take place. Traders will watch the pair close above the daily SMA 200 or below 0.6500 to confirm the direction of the next movement.
Today’s critical levels to watch:
Support: 0.6500, 0.6350, 0.6170, 0.6000
Resistance: 0.6700, 0.6750, 0.6820, 0.7000