USDX (USD Index)
The upward movement of the U.S dollar index tested the 100.00 resistance level and produce a bearish reaction. However, each bearish reaction ended with a bullish recovery at the end of the day. At the current time, the index is testing the 100.00 resistance level and waiting for further reaction. If a bearish correction happens then the index could move lower to test the 99.40 level.
EUR/USD
EUR/USD opened the week above the 1.0900 level but closed below it at the end of the day. The pair continue in a bearish pressure and is expected to move lower to the target 1.0800 support level. Traders will wait for further reaction near the current level for now. If the pair moves lower and close below 1.0800 then the bearish trend is set to continue. On the other hand, an upward movement with a close above 1.1185 will overturn the current bearish trend.
Today’s critical levels to watch:
Support: 1.0900, 1.0800
Resistance: 1.1000, 1.1120, 1.1185
GBP/USD
GBP/USD stays near the 1.3000 support level without a strong reaction. The pair will continue the consolidation near the level for now. Traders will wait for a breakout below the level for bearish continuation confirmation. However, if the pair start moving higher and closes above 1.3330 then the trend will change from bearish to bullish.
Today Critical level to watch:
Support: 1.3000
Resistance: 1.3125, 1.3250, 1.3300, 1.3330
USD/JPY
USD/JPY is mostly bullish with a new higher high printed on the chart. Similar to the previous analysis, a bearish correction might happen again toward the blue box area. Traders will continue to hold long positions or scale-out positions while waiting for a bearish correction to enter at better levels.
Today’s critical levels to watch:
Support: 125.00, 120.00
Resistance: 126.00
AUD/USD
AUD/USD closed below the orange box area which confirmed a bearish continuation toward the 0.7300 – 0.7330 area. Despite the bearish close, the pair make a major bullish recovery today to trade above yesterday’s high. If the pair could maintain the bullish pressure then it will form a bullish engulfing pattern.
Traders will wait for the closing level at the end of the day to get a clue on the pair’s next direction.
Today critical levels to watch:
Support: 0.7450
Resistance: 0.7500, 0.7550, 0.7640, 0.7690