USDX (USD Index)
U.S dollar index come under bearish pressure today after yesterday’s inflation numbers were lower than expected. Although the market fear of recession grew after the release of the Fed FOMC minutes of the meeting, it seems U.S. dollar index will continue moving bearishly. On the lower side, we have 100.00 as a bearish target before any significant bounce. When the index makes a bullish correction, traders could consider entering short positions near the resistance level.
EUR/USD
EUR/USD breakout above the 1.1000 resistance level and is set to close above it. The pair will confirm the continuation of the long-term bullish trend and use the breakout level as a place to bounce. Traders will wait for a bearish pullback to enter more long positions. The area between 1.0800 – 1.1000 could become the area where traders prepare 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 building more bullish pressure and will target the 1.2625 – 1.2800 resistance levels as expected. Traders who have long positions will continue to hold the positions and add more long positions when a bearish correction happens. On the lower side, the 1.2000 – 1.2200 area is the place to consider long positions. However, if the pair close below the daily SMA 200 then we might see a bearish reversal.
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 traders will continue waiting for confirmation. As mentioned before, a close below the area could trigger more sell-off to target a new lower low. On the upside, the daily SMA 200 is the bullish target to watch when the pair manage to start a bullish leg.
Today’s critical levels to watch:
Support: 133.00, 130.00, 125.00
Resistance: 137.70
AUD/USD
AUD/USD is mostly higher today above the daily SMA 200. If the pair could maintain the bullish pressure and close above the daily SMA 200 until the end of the week then the bullish trend confirmed. Traders will wait for the closing level at the weekend to determine the pair’s next direction. If the pair reverse the upward pressure and close below the daily SMA 200 with strong bearish momentum then we might see a bearish continuation.
Today’s critical levels to watch:
Support: 0.6750, 0.6700, 0.6500, 0.6000
Resistance: 0.6820, 0.7000