USDX (USD Index)
The U.S. Dollar Index printed a clear bearish engulfing pattern in the previous session. While there has been a bullish attempt today, the index quickly lost momentum and has returned to trade near its daily opening level, hovering around the 99.76 mark. This lack of sustained buying indicates that sellers remain in control of the near-term momentum. If the bearish pressure continues and prevents any meaningful recovery, the 99.00 – 99.50 area will become the primary downside focus for the index.
EUR/USD
EUR/USD closed yesterday’s session by printing a bullish engulfing pattern near the pivotal 1.1580 resistance level. Despite the strong close, there has been no bullish follow-through today, with the pair largely trapped in sideways movement near this upper boundary. Traders appear to be sitting on the sidelines, waiting for a more definitive market reaction or catalyst to justify a breakout. Until a clean break occurs, the broader 1.1500 – 1.1580 consolidation range remains intact.
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 successfully closed above the daily SMA 200 and continues to maintain its positioning near the moving averages. On the upside, the 1.3450 mark is the critical resistance level to watch. The pair is likely to remain in a holding pattern, ranging between the moving averages and this 1.3450 barrier. If it fails to break higher soon, GBP/USD carries the potential to turn lower and retest the 1.3300 – 1.3330 support area.
Today’s critical levels to watch:
Support: 1.3330, 1.3300, 1.3250
Resistance: 1.3450, 1.3600
USD/JPY
USD/JPY formed a bearish engulfing pattern at recent highs, signaling a potential near-term reversal. However, the pair is trading upward again today, remaining firmly inside the range of yesterday’s bearish candlestick. The critical question for the market heading into the weekend is whether the pair will resume its bearish corrective move next week, or if the current upward drift will entirely invalidate the engulfing setup.
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 managed a solid bounce from the psychological 0.7000 handle, printing a bullish engulfing candlestick on the daily chart. Despite the optimistic technical signal, there is no strong follow-through above the candle’s high in today’s trading. If the pair takes too long to capitalize on this upward momentum, the rally could stall out entirely, resulting in prolonged sideways movement clinging near the 0.7000 threshold.
Today’s critical levels to watch:
Support: 0.7000, 0.6820, 0.6750, 0.6700, 0.6600
Resistance: 0.7160, 0.7300, 00.7330