USDX (USD Index)
The U.S dollar index bounced again from the level near 100.00, confirming further ranging movement. The bullish close erased all of the loss incurred on Tuesday. Currently, the index is moving not far from the opening level, and will wait for further confirmation. Will the index attempt to move upward to target the 102.00 level? Alternatively, will it continue trading sideways and eventually break out below 100.00?
EUR/USD
EUR/USD got rejected from the 1.1185 resistance level and made a bearish close yesterday. The pair situation has not changed yet as it will attempt to extend the bullish movement. A close above 1.1185 is a major bullish confirmation and it does not happen yet. At the current time, the pair has 1.1120 as the support level and traders will use it as a base to resume the bullish movement in the pair.
Today’s critical levels to watch:
Support: 1.1120, 1.1000, 1.0900, 1.0800
Resistance: 1.1185, 1.1300, 1.1360
GBP/USD
GBP/USD bullish continuation reversed yesterday before the pair could reach the 1.3450 resistance level. The bearish close might be a significant one but there is no bearish continuation today. If the pair manage to climb above the bearish candlestick high then the bullish trend could immediately continue. On the lower side, 1.3250 is the major support level to watch for bounce reactions.
Today’s critical levels to watch:
Support: 1.3300, 1.3250
Resistance: 1.3450
USD/JPY
USD/JPY reached the 145.00 resistance level and will test it. If the pair manage to continue the upward movement then 147.00 is the resistance level to watch. We expect the pair to form bearish reactions between 145.00 – 147.00 so traders will prepare for short positions. However, a breakout and close above 147.00 could reverse the trend from bearish to bullish.
Today’s critical levels to watch:
Support: 142.00, 141.00
Resistance: 145.00, 147.00, 150.00, 155.00
AUD/USD
AUD/USD printed a major bearish close yesterday near the 0.6820 level. It might start a bearish correction but the 0.6820 seems providing support and the pair bounced from it today. If the pair could erase all of the loss today then it will immediately continue the bullish movement to target 0.7000. Traders will continue to use each bearish correction in the pair as a chance to add more long positions.
Today’s critical levels to watch:
Support: 0.6700, 0.6500
Resistance: 0.6750, 0.6820, 0.7000