USDX (USD Index)
U.S dollar index extended the bullish movement above the daily SMA 200 which means the bullish trend will not stop yet for now. The index might continue the upward movement toward the bearish trendline. As there is no bearish reversal confirmation yet, it is better to stay sidelined and monitor the movement of the index. We could say it is a strong month for the U.S. dollar index which erased two months’ bearish close. The next FOMC meeting might provide traders with a better clue on the market direction.
EUR/USD
EUR/USD pushed lower below 1.0800 and printed a lower swing low. It is not a good situation for the bull as the structure might change. However, if the pair could immediately return above 1.0800 and daily SMA 200 then the situation could change again. Under the current situation, it is better to stay sideline and wait for further reactions.
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 moved lower below 1.3000 and now will target the daily SMA 200 and 1.2800. We continue to maintain a bullish outlook on the pair, however, will stay cautious if the pair breaks below the daily SMA 200 and 1.2800. If the pair could bounce from the daily SMA 200 or 1.2800 then traders could start adding long positions.
Today’s critical levels to watch:
Support: 1.3050, 1.3000
Resistance: 1.3250, 1.3300, 1.3450
USD/JPY
USD/JPY breakout above the daily SMA 200 with moderate bullish momentum. The pair might have turned the trend bullish again. However, traders will monitor the closing of the week. If the pair turns back under bearish pressure and closes the week below the daily SMA 200 or better 150.00 then the trend will turn bearish again.
Today’s critical levels to watch:
Support: 150.00, 147.00, 145.00, 142.00, 141.00
Resistance: 155.00
AUD/USD
AUD/USD reached the daily SMA 200 with moderate bearish momentum. The pair might stick near the level and try to form a support level. If the pair could bounce from the level then there is a chance of bullish continuation. As the bearish movement has strong momentum, traders will stay sidelined or enter with small positions until further confirmation.
Today’s critical levels to watch:
Support: 0.6700, 0.6500
Resistance: 0.6750, 0.6820, 0.7000