USDX (USD Index)
U.S dollar index came under bearish pressure today and is set to test the 100.00 handle. The index’s bearish trend might continue but will it immediately break out below 100.00? Alternatively, will it continue trading sideways near the 100.00 handle and bounce from it before a bearish continuation? Traders will continue to hold short positions in the U.S. dollar and wait for a bullish correction to add more short positions.
EUR/USD
EUR/USD make a bullish attempt at the 1.1185 but no breakout and close above the level yet. As mentioned before, the pair need a strong bullish close above the resistance level to resume the bullish trend. On the upside, 1.1300 – 1.1360 will become the bullish target to watch when a bullish breakout happens. Without any breakout, the pair will continue trading between 1.1120 – 1.1185.
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 bounced from 1.3300 – 1.3300 and made a bullish close yesterday. The pair will continue the bullish movement to test the 1.3450 resistance level. We will wait for either a close above 1.3450 or a bearish correction toward 1.3250 for a chance to add more long positions. The trend has turned bullish and a bearish correction in the pair is a chance for traders to add more long positions.
Today’s critical levels to watch:
Support: 1.3300, 1.3250
Resistance: 1.3450
USD/JPY
USD/JPY blasted through 145.00 and almost reached 147.00 today. The upward movement immediately turned bearish with strong momentum. We could say the stop hunting already happened and no higher swing high printed in the process. As mentioned before, the area between 145.00 – 147.00 is the area to look for short positions. Under the current situation, traders who have entered short positions will hold the positions and target a new lower swing low below 139.30.
Today’s critical levels to watch:
Support: 142.00, 141.00
Resistance: 145.00, 147.00, 150.00, 155.00
AUD/USD
AUD/USD immediately bounced from the 0.6820 broken resistance level and continued the bullish movement. The pair is on the path toward the 0.7000 resistance level and it might reach it in a few months. Traders who have entered long positions when a retest of 0.6820 happens will continue to hold the long positions. When the pair started another bearish correction, traders could add more long positions.
Today’s critical levels to watch:
Support: 0.6700, 0.6500
Resistance: 0.6750, 0.6820, 0.7000