USDX (USD Index)
The U.S dollar index closed higher yesterday and currently trading near the 98.40 level. The index will stick near the level and waiting for the U.S job data announcement today. No change to the ranging movement inside the 97.50 – 99.40 area. The index needs to close outside of the range to confirm the next direction. We think traders could continue using the top and bottom of the range to enter positions in the USD pairs.
EUR/USD
EUR/USD got rejected from the 1.1120 -1.1185 resistance level but no bearish follow-through today. If the pair continue the bearish movement then traders will expect a retest on the 1.1000 support level. A breakout and close below the 1.1000 support level will confirm a bearish continuation toward the 1.0800 support level.
Today’s critical levels to watch:
Support: 1.1000, 1.0900, 1.0800
Resistance: 1.1120, 1.1185
GBP/USD
GBP/USD is mostly sideways near the 1.3125 level while waiting for the announcement of U.S job data today. The overall trend is bearish which suggests a bearish continuation. However, traders will wait for a breakout from the 1.3000 – 1.3250 area to confirm the next direction. The breakout from the area will print either higher high or lower low on the chart.
Today Critical level to watch:
Support: 1.3125, 1.3000
Resistance: 1.3250, 1.3300, 1.3330
USD/JPY
USD/JPY undergoes a bearish correction and is expected to show a bounce reaction from the blue box area. It seems the pair have shown a bullish reaction but not at the best timing. Traders might want to continuously monitor the pair reaction for now until the release of U.S job data today. If the pair start moving lower with strong bearish momentum then we will see a deeper bearish correction with 115.90 as a target.
Today’s critical levels to watch:
Support: 120.00
Resistance: 125.00
AUD/USD
AUD/USD situation has not changed yet since the beginning of the week. The pair stuck near the 0.7500 level and continue trading sideways. We will continue waiting for the close outside of the orange box area to confirm the next direction. On the lower side, there is 0.7300 – 0.7330 as a bearish target when a breakout happens. On the upside, 0.7640 is the nearest target.
Today critical levels to watch:
Support: 0.7450, 0.7330, 0.7300, 0.7160
Resistance: 0.7500, 0.7550