USDX (USD Index)
U.S dollar index bounced upward after the latest drop in the stock market on Friday. Traders are assuming that the Fed will keep pausing for now, especially when the Fed think inflation will move upward after President Trump’s tariff. On the upside, 103.00 – 104.00 might act as resistance area and trigger relieve rally in the stock market. Despite the bullish situation, we think the trend will continue to stay bearish, with 100.00 as bearish target to watch.
EUR/USD
EUR/USD broke above the 1.1000 level but closed the week below it. It seems there will be pause in the bullish movement and the pair enter bearish correction phase. On the lower side, 1.0900 and 1.0800 will act as support levels to watch. In the long-term, we believe the pair will continue its bullish trend and target the 1.1300 – 1.1360 resistance level next.
Today’s critical levels to watch:
Support: 1.1000, 1.0900, 1.0800
Resistance: 1.1120, 1.1185, 1.1300
GBP/USD
GBP/USD erased two days gain with massive bearish candlestick close. It might be a confirmation for bearish continuation this week. Traders will wait for reactions near the 1.2800 and daily SMA 200. When the pair bounce with strong bullish reactions, traders could enter long positions targeting a new higher swing high.
Today’s critical levels to watch:
Support: 1.2800
Resistance: 1.3000, 1.3250
USD/JPY
USD/JPY bounced from the 145.00 level and closed near the previous swing low. The pair might attempt to continue the bullish recovery with 149.20 as upside limit. We think the current upward movement is a corrective movement which will provide traders with a chance to add more short positions. On the lower side, 142.00 will become the support level to watch as target.
Today’s critical levels to watch:
Support: 145.00, 142.00
Resistance: 149.20, 150.00, 151.00, 151.80
AUD/USD
AUD/USD breakout from the triangle consolidation and fell sharply to reach the 0.6000 level. There is slight recovery, but the pair might attempt to extend the bearish movement this week. Traders will avoid entering long positions until the pair show strong bullish reactions. The trend is bearish now, which mean shorting after a bullish correction might be a better choice.
Today’s critical levels to watch:
Support: 0.6250, 0.6000
Resistance: 0.6350, 0.6500, 0.6700