USDX (USD Index)
U.S dollar index turned higher again today after the PPI data release. Rising PPI number spread fear that it will trickle to CPI number in the next report. It seems inflation might start to increase again. Despite the situation, there is no strong jump in the U.S. dollar index, which mean the current movement might be temporary. No change to the outlook, on the upside, 100.00 is the major level while a new lower swing low will confirm a bearish continuation.
EUR/USD
EUR/USD got rejected from the 1.1710 resistance level today and might continue lower to test 1.1580 level. The pair is currently trading between 1.1580 – 1.1710 and a breakout from the range might confirm the next direction. On the upside, the pair need to print new higher swing high to confirm the bullish continuation. On the lower side, 1.1300 will become the key level for bearish continuation.
Today’s critical levels to watch:
Support: 1.1580, 1.1500, 1.1360, 1.1300
Resistance: 1.1710, 1.1820
GBP/USD
GBP/USD tested the 1.3600 level and show bearish reactions. It might be a temporary reaction before further upside. At the current time, the pair is inside the 1.3450 – 1.3600 range and on the verge of printing a new higher swing high. When the pair could break out above 1.3600 and print a new higher swing high, the bullish trend could continue.
Today’s critical levels to watch:
Support: 1.3330, 1.3300, 1.3250, 1.3125, 1.3050, 1.3000
Resistance: 1.3450, 1.3600, 1.3800, 1.4000
USD/JPY
USD/JPY breakout lower, but immediately recover above the opening level. It could trigger a fake bearish breakout and bring the pair further upside. Nevertheless, it is the first attempt to sweep the stop below latest swing low and failed. On the upside, as long as the pair stay below 150.00 and daily SMA 200, traders could expect another bearish attempt. To cancel the bearish scenario, the pair need to climb above the massive bearish candlestick high.
Today’s critical levels to watch:
Support: 145.00, 142.00,
Resistance: 149.20, 150.00, 151.00
AUD/USD
AUD/USD pushed lower with strong bearish momentum today. We could see the pair revisit the 0.6500 level and maintain the position near it. If the pair could close the day near the level, bounce strongly before the weekly close, then there is chance of bullish continuation. Under current situation, it is better to observe the weekly close, whether the pair manage to close above 0.6500 or not.
Today’s critical levels to watch:
Support: 0.6350, 0.6250, 0.6000
Resistance: 0.6500, 0.6700