USDX (USD Index)
U.S dollar index holding out near the top and might extend the bullish movement to target a new higher swing high. There is not much movement as traders are mostly on holiday and we are nearing the end of the year. Will the index resume the bullish movement next year? Alternatively, will it finally move lower to start a bearish correction?
EUR/USD
EUR/USD is consolidating between 1.0340 and 1.0650. The pair will continue the ranging movement for now while waiting for a breakout. There is no change to the current bearish outlook yet. The pair might resume the bearish movement to print a new lower swing low. On the upside, a close above 1.0650 and a new higher swing high will cancel the current bearish outlook.
Today’s critical levels to watch:
Support:
Resistance: 1.0650, 1.0800, 1.0900, 1.1000, 1.1120
GBP/USD
GBP/USD has fallen below 1.2625 but there is no major bearish continuation yet. The pair looks close higher at the end of week and now might attempt to extend the upward movement to test 1.2625. As long as the pair continue stay below the daily SMA 200 then the trend will continue bearish. A close above daily SMA 200 will become a major bullish confirmation.
Today’s critical levels to watch:
Support: 1.2200
Resistance: 1.2625, 1.2800, 1.3000
USD/JPY
USD/JPY situation is similar to the U.S. dollar index situation. The pair stay near the swing high and currently consolidating. It might extend the bullish movement to target a new higher swing high. On the other hand, if a bearish movement happens then traders could wait near the daily SMA 200 for bullish reactions. A bullish bounce from the support level is a signal for traders to enter long positions.
Today’s critical levels to watch:
Support: 155.00, 151.80, 150.00
Resistance: 158.00
AUD/USD
AUD/USD continues under bearish pressure as the pair print a new lower low on the daily chart. There is no change to the bearish structure yet which means a bullish movement is only a corrective movement. Traders will use each bullish correction in the pair as chance to add short positions near resistance levels.
Today’s critical levels to watch:
Support: 0.6250, 0.6000
Resistance: 0.6350, 0.6500, 0.6700