USDX (USD Index)
The U.S. dollar index initially climbed and printed a new higher high today. However, the index reversed sharply following the news that Trump announced the cancellation of an evening strike against Iran. This sudden change in market sentiment suggests potential downside pressure, and we may see the index return to trade inside the 99.00 – 99.50 area in the coming sessions.
EUR/USD
EUR/USD has successfully bounced from the 1.1500 support level again and is currently trading near 1.1580. With this movement, the pair looks like it might close the day as a bullish engulfing pattern. The key situation remains unchanged; the pair needs to break and close outside the 1.1500 – 1.1580 area to confirm the next directional trend.
Today’s critical levels to watch:
Support: 1.1500, 1.1360, 1.1300
Resistance: 1.1580, 1.1710, 1.1820,1.2000, 1.2070
GBP/USD
GBP/USD staged a recovery, bouncing from the 1.3300 – 1.3330 support area and climbing back above the daily SMA 200. We can now define the current range as spanning between 1.3300 and 1.3450. Until a close outside this range occurs with strong momentum, we should expect the ranging behavior to continue.
Today’s critical levels to watch:
Support: 1.3330, 1.3300, 1.3250
Resistance: 1.3450, 1.3600
USD/JPY
USD/JPY fell sharply today, effectively erasing six days of gains. This price action serves as a reaction at the pre-BOJ intervention level, though on a smaller scale. If the bears can gain more momentum in the coming days, we may be looking at the start of a new bearish leg for the pair. A climb above the candlestick high will cancel the bearish view.
Today’s critical levels to watch:
Support: 160.00, 158.89, 155.50, 155.00, 153.00, 151.00
Resistance: 161.18
AUD/USD
AUD/USD bounced from the 0.7000 level, and given the current price action, it looks likely to close the day as a bullish engulfing pattern. The support level has been respected, and it is now up to the bulls to determine if they can sustain this momentum and push the price higher from here.
Today’s critical levels to watch:
Support: 0.7000, 0.6820, 0.6750, 0.6700, 0.6600
Resistance: 0.7160, 0.7300, 00.7330