USDX (USD Index)
U.S. dollar index made a strong bearish move today and finally printed a new lower swing low on the daily chart. This confirms the continuation of the bearish trend that has been developing for weeks. The index might attempt to reverse the breakout, and traders will watch the development. The FOMC meeting is only one week away, which could inject volatility. For now, the direction is bearish as, and any upward movement will become a chance to short U.S. dollar.
EUR/USD
EUR/USD moved higher in response to the sharp decline in the U.S. dollar index. The pair trades comfortably above the 1.1580 support level, and printed a new higher swing high. As long as U.S dollar index weakness continues, EUR/USD may attempt to retest 1.1710 or even push beyond it. We are expecting straight movement toward 1.1710 and reactions after next week FOMC meeting.
Today’s critical levels to watch:
Support: 1.1580, 1.1500, 1.1360, 1.1300
Resistance: 1.1710, 1.1820
GBP/USD
GBP/USD gained strongly today following the major drop in U.S. dollar index. The pair broke above the daily SMA 200 also 1.3250 and continues to show strong bullish momentum. If this condition remains, the pair might immediately move toward 1.3450 next. If a bearish correction happens, 1.3250 and daily SMA 200 are the first levels where buyers may step in. As long as the price stays above both levels, the bullish trend remains intact.
Today’s critical levels to watch:
Support: 1.3250, 1.3125, 1.3050, 1.3000
Resistance: 1.3300, 1.3330, 1.3450
USD/JPY
USD/JPY failed to recover and moved lower again today, reflecting the broad weakness in the U.S. dollar. The pair is moving toward the green box area again and might test it soon. As long as U.S dollar index weakness continues, the pair may remain under pressure. For now, the bullish structure remain intact and traders will wait for reactions near the box area.
Today’s critical levels to watch:
Support: 155.00, 153.00, 151.00
Resistance: 158.89, 160.00
AUD/USD
AUD/USD strengthened further as the U.S. dollar weakened sharply today. The pair moved higher and printed a new higher swing high. If the bullish momentum continue to build, we expect a breakout from the green box area and continuation toward 0.6700. If there is bearish pullback to test the previous swing high, then traders could use it as chance to add long positions.
Today’s critical levels to watch:
Support: 0.6500, 0.6350, 0.6250, 0.6000
Resistance: 0.6700