USDX (USD Index)
The movement of U.S. dollar index continues bearish even though there is a bullish close yesterday. We expect the index to continue moving lower and target the 100.00 support level. When the index reaches the support level and start a bullish bounce, traders could wait near the resistance level for a new lower high and a chance to enter short positions in the U.S. dollar. On the upside, a close above the daily SMA 200 will reverse the current bearish outlook.
EUR/USD
EUR/USD closed lower yesterday near the 1.0900 level. There is no bearish continuation today and the pair moves upward instead. If the pair continues the bullish movement then we will see a test on the 1.1000 resistance level soon. A close above the 1.1000 level will confirm a long-term bullish continuation. On the lower side, when the pair start a bearish correction, traders could use 1.0900 and 1.0800 as places to enter long positions.
Today’s critical levels to watch:
Support: 1.0900, 1.0800, 1.0650, 1.0339
Resistance: 1.1000
GBP/USD
GBP/USD moving toward the 1.2625 and 1.2800 resistance levels and there is no sign of weakness yet. Under the current situation, traders will wait for a bearish pullback toward the previous swing high to enter more long positions. As long as the pair stays above the daily SMA 200 and 1.2000 – 1.2200 then traders will expect the bullish trend to continue. Without a new lower-low traders will continue to stick with long positions.
Today’s critical levels to watch:
Support: 1.2100, 1.2000, 1.1450
Resistance: 1.2200, 1.2625, 1.2800
USD/JPY
USD/JPY extended the bearish movement for the third day but it start a bullish movement today. No change to the situation as the pair is trading near the green box area. If the pair could reverse the bearish pressure and start moving upward then the daily SMA 200 will become a target. Meanwhile, a new lower low will confirm a bearish continuation.
Today’s critical levels to watch:
Support: 133.00, 130.00, 125.00
Resistance: 137.70
AUD/USD
AUD/USD pushed lower below the daily SMA 200 again and printed two bearish closes. There is a bearish continuation today to test the low of the bullish candlestick. If the pair could recover and close inside the 0.6700 – 0.6750 area then there is a chance of upward movement to print a new higher high. We think the pair could continue the bullish movement and target the 0.7160 level in the long-term. However, if the pair manages to close below the previous week’s low then we might see a bearish continuation to target 0.6500.
Today’s critical levels to watch:
Support: 0.6750, 0.6700, 0.6500, 0.6000
Resistance: 0.6820, 0.7000