USDX (USD Index)
The U.S. dollar index printed a bullish pin bar pattern at the end of last week. Following the sudden U.S.-Iran escalation, the index gapped up aggressively today. Because of this upward momentum, the index might climb higher to test the daily SMA 200. However, the broader trend direction remains firmly bearish. As a result, we ultimately expect a bearish rejection once it reaches that dynamic resistance.
EUR/USD
EUR/USD suffered a firm rejection from the crucial 1.1820 resistance level. Because buyers lost their momentum, the pair now has a strong chance to move lower. Moving forward, sellers will likely attempt to retest the 1.1710 support level. Furthermore, the daily SMA 200 sits nearby as an additional downside target. If the price reaches this zone, traders should watch closely for potential bounce signals.
Today’s critical levels to watch:
Support: 1.1710, 1.1580, 1.1500, 1.1360, 1.1300
Resistance: 1.1820,1.2000, 1.2070
GBP/USD
GBP/USD is facing the exact same situation as EUR/USD today. Specifically, the pair experienced a clear rejection from the stubborn 1.3600 resistance barrier. Since the upward momentum has stalled, the market now has a chance to move lower. Consequently, the price will likely slide down to retest the 1.3450 support level. If it falls to this area, buyers might step back in to defend the range.
Today’s critical levels to watch:
Support: 1.3450, 1.3330, 1.3300, 1.3250
Resistance: 1.3600
USD/JPY
During last week’s drop, USD/JPY managed to print a new lower low. Despite this downward push, the overall sideways situation has not changed yet. The pair remains heavily trapped within its current consolidation phase. Therefore, the market still lacks a definitive directional bias. To confirm a clear trend, traders will need to see a decisive breakout from this ongoing sideways range.
Today’s critical levels to watch:
Support: 158.89, 155.50, 155.00, 153.00, 151.00
Resistance: 160.00, 161.18
AUD/USD
AUD/USD continues to stick closely near the 0.7160 resistance level. There was some initial bearish pressure earlier today, but the pair quickly recovered. In fact, it has already returned above its opening level for now. Because of this resilience, the ongoing consolidation will likely continue near the 0.7160 pivot. Traders should remain patient until the pair prints a clear breakout signal.
Today’s critical levels to watch:
Support: 0.7000, 0.6820, 0.6750, 0.6700, 0.6600
Resistance: 0.7160