USDX (USD Index)
U.S dollar index was slightly higher this week as traders monitored the release of inflation data. If inflation data continue to cool then the U.S. dollar index will be back under bearish pressure. However, if the inflation number starts to move up again then the U.S. dollar index could continue to move upward to target the daily SMA 200. We think the index could continue the bearish movement to target the 100.00 level in the long term.
EUR/USD
EUR/USD is trading lower and might reach the 1.0800 level. At the current time, the pair trend is bullish and traders might want to stick with long positions. Without a new lower low on the chart, there is no reason to enter short positions. Meanwhile, if the pair could continue upward and print a close above 1.1000 then the bullish trend will continue.
Today’s critical levels to watch:
Support: 1.0900, 1.0800, 1.0650, 1.0339
Resistance: 1.1000
GBP/USD
GBP/USD started a bearish correction after the bullish rally. The pair might move lower to target the 1.2000 – 1.2200 area or the daily SMA 200. If the pair manages to reach both levels and form strong bullish reactions then traders could enter long positions. On the upside, 1.2625 and 1.2800 are the targets to watch.
Today’s critical levels to watch:
Support: 1.2100, 1.2000, 1.1450
Resistance: 1.2200, 1.2625, 1.2800
USD/JPY
USD/JPY continues trading sideway near the green box area and no new higher high or lower low is printed on the chart. The next higher high or lower low might confirm the pair’s next medium-long-term directions. On the upside, the daily SMA 200 will become a target, meanwhile, on the lower side, a new lower low will become the target to watch.
Today’s critical levels to watch:
Support: 133.00, 130.00, 125.00
Resistance: 137.70
AUD/USD
AUD/USD got rejected from the daily SMA 200 and looks to continue the bearish movement. The pair has 0.6500 as the bearish target to watch. A new lower low on the chart will confirm the continuation of a bearish trend. Meanwhile, a close above the daily SMA 200 and a new higher high will confirm a long-term bullish reversal.
Today’s critical levels to watch:
Support: 0.6750, 0.6700, 0.6500, 0.6000
Resistance: 0.6820, 0.7000