USDX (USD Index)
The index made a strong bullish close with strong momentum yesterday. However, there is no bullish continuation in today’s trading session. The index might continue trading near the 102.00 level nearing the Fed FOMC meeting next week. If the index closed above the resistance level after the FOMC meeting then there is an upward continuation chance toward the daily SMA 200. In the long term, we still think the index will resume the bearish trend and target a level below 100.00.
EUR/USD
EUR/USD is on the path toward the 1.1000 support level and will soon reach the support level. Traders will monitor the pair reactions near the 1.1000 level. A bullish continuation is possible if the pair can form major bullish reactions and bounce upward from the 1.1000 level. However, if the pair continues the bearish movement after the FOMC meeting then the pair might target the daily SMA 200.
Today’s critical levels to watch:
Support: 1.1000, 1.0900, 1.0800
Resistance: 1.1120, 1.1185, 1.1300, 1.1360
GBP/USD
GBP/USD moved lower and reached the 1.3000 – 1.3050 area as mentioned before. The pair will test the support area and traders will wait for reactions. The pair might show major reactions after the Fed FOMC meeting next week. If the pair breaks lower then the 1.2800 and daily SMA 200 will become the bearish target to watch. On the other hand, a bounce from the area could bring the pair upward to resume the bullish trend.
Today’s critical levels to watch:
Support: 1.3125, 1.3050, 1.3000
Resistance: 1.3250
USD/JPY
USD/JPY slowly moving lower to target the 141.00, 139.30, and 137.70 support levels. Without any change in the situation, the pair will soon reach the bearish targets. A new lower swing low on the chart is a confirmation that the bearish trend will continue. If the pair starts moving upward again then 145.00, 147.00 is the resistance level to watch.
Today’s critical levels to watch:
Support: 142.00, 141.00
Resistance: 145.00, 147.00, 150.00, 155.00
AUD/USD
AUD/USD resumed the bearish movement and might reach the daily SMA 200 soon. The pair is in a bearish correction phase right now and traders will wait for bullish reactions near the support level. When the pair could form a major bullish reaction, traders could enter long positions targeting a new higher swing high. Next week’s FOMC meeting could be the time when a major reaction from daily SMA 200 occur.
Today’s critical levels to watch:
Support: 0.6700, 0.6500
Resistance: 0.6750, 0.6820, 0.7000