USDX (USD Index)
Bearish pressure on U.S dollar index pushed it down and closed near 97.50 support level. However, there is no follow-through by the bear today and we have a mini bounce in the index. If the index could maintain the bullish pressure and avoid closure below 97.50 then we could expect the index to start a new bullish leg from the current level.
A higher high above the previous week high needed to confirm the bullish trend.
News to watch
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Technical Analysis
EUR/USD
The bullish movement of EUR/USD was convincing and might start a new bullish trend. However, EUR/USD hesitate near the top of its bearish channel and currently pushed lower. If the pair closes below 1.1185 support level then we could expect it to continue the bearish trend inside the bearish channel.
today critical levels to watch:
Support: 1.1185, 1.1120
Resistance: 1.1200, 1.1300
GBP/USD
The overall trend of GBP/USD is bearish even though a bounce from support 1.2625 happened in the previous week. Today, the bear seize control and pushed the price lower. It seems GBP/USD will continue its bearish trend and test 1.2625 again. At the current time, traders could use the range 1.2625 – 1.2800 to trade the range.
Today Critical level to watch:
Support: 1.2625
Resistance: 1.2800, 1.3000, 1.3125, 1.3250
USD/JPY
The bearish pressure in USD/JPY halted today and we have price moving up though no movement above the previous day high yet. If the pair continues upside then 109.70 – 110.00 is the area to watch for possible short positions. On the downside, 109.00 is the level to watch for long positions.
We expect 109.00 retested and the pair break lower.
Today critical levels to watch:
Support: 109.00
Resistance: 109.70, 110.00, 110.50
AUD/USD
AUD/USD mostly higher but stay below previous week high. The pair overall trend is bearish and it is not suggested to enter long positions. However, if AUD/USD manage to continue higher then 0.7000 will become the upside target. When the price hit 0.7000 then traders could consider entering short positions.
Today critical levels to watch:
Support: 0.6900
Resistance: 0.7000