USDX (USD Index)

There is no change to the U.S dollar index direction yet which continue moving upward. Traders will expect the index to continue upward and target the 2020 and 2017 high. Traders will continue to stay sideline and wait for a bearish correction to add more long positions in the U.S dollar. Meanwhile, 100.00 is the level to watch for a bounce when a bearish correction happens.

EUR/USD

EUR/USD extended the bearish movement and reached the 1.0650 support level. The bearish pressure has moderate momentum and might push the price further lower. If a bullish bounce happens then traders will wait near 1.0800, 1.0900, and 1.1000 for a chance to add more short positions.

Today’s critical levels to watch:

Support: 1.0650

Resistance: 1.0800, 1.0900

GBP/USD

GBP/USD breakout below 1.3000 has massive follow-up as the price currently falls below 1.2625. If there is no bullish reaction then traders will expect the pair to reach the 1.2500 support level next. Similar to EUR/USD, if a bullish bounce happens then traders could prepare to enter short positions near resistance levels.

Today Critical level to watch:

Support: 1.2625

Resistance: 1.3000, 1.3125, 1.3250

USD/JPY

USD/JPY hanging near the high without a major bearish reaction. The pair might start a bearish correction toward 125.00 and traders could use the moment to enter long positions. However, a bearish correction is not guaranteed and traders will continue to avoid short positions until a major bearish reaction happens.

Today’s critical levels to watch:

Support: 126.00, 125.00, 120.00

Resistance: 130.00

AUD/USD

AUD/USD traded lower and reached the 0.7160 support level. The bearish pressure has not receded yet and we might see a breakout below the level. If the pair continues moving lower then traders will expect the pair to target the 0.7000 support level. No reason to become bullish yet as the global market is mostly under pressure from China’s covid cases and potentially higher inflation.

Today critical levels to watch:

Support: 0.7160, 0.7000

Resistance: 0.7300, 0.7330