USDX (USD Index)
No change to the bearish outlook of the U.S. dollar index. In the medium-long term, the index is expected to move lower and reach the 100.00 support level. Tomorrow, there is the release of U.S inflation data which could trigger major volatility in the market. Traders will monitor the release of the data and the market reactions toward it. If the index manages to reverse the bearish pressure then the daily SMA 200 will become the upward target.
EUR/USD
EUR/USD returned above the 1.0900 level today and might resume the bullish movement to test the 1.1000 level. If the pair could close above 1.1000 then the bullish trend will continue for the medium-long term. Traders will continue to use each bearish correction as a chance to enter long positions at a lower level.
Today’s critical levels to watch:
Support: 1.0900, 1.0800, 1.0650, 1.0339
Resistance: 1.1000
GBP/USD
GBP/USD bearish pressure has receded today and the pair show upward pressure. On the upside, the pair has 1.2625 and 1.2800 as upward targets. Meanwhile, if the pair start moving lower then traders will use the 1.2000 – 1.2200 area and the daily SMA 200 as places to enter more long positions. Short positions are not suggested unless there is a major change in the fundamental data such as inflation and the Fed interest-rate outlook.
Today’s critical levels to watch:
Support: 1.2100, 1.2000, 1.1450
Resistance: 1.2200, 1.2625, 1.2800
USD/JPY
USD/JPY managed to bounce from the green box area yesterday but there is no bullish continuation today. The pair might continue consolidating near the area while waiting for further development. If the pair close below the area then traders will expect a bearish continuation to target a new lower low. On the upside, the daily SMA 200 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 pushed lower yesterday and might continue the bearish movement toward the 0.6500 support level. The pair currently showing bullish pressure but is limited inside yesterday’s range. There is no conclusion yet on the pair’s next direction. If the pair could reverse the bearish pressure and close above the daily SMA 200 then the trend will turn bullish again.
Today’s critical levels to watch:
Support: 0.6750, 0.6700, 0.6500, 0.6000
Resistance: 0.6820, 0.7000