USDX (USD Index)

The U.S. dollar index was pushed down with strong bearish momentum yesterday after the Fed’s interest rate announcement. There was no interest rate cut but Jerome Powell indicated there would be a cut in September. With this announcement, everything aligned with market expectations so that the index did not continue to weaken but instead reversed upwards. As previously estimated, the index may continue its consolidation near the daily SMA 200 point until the next interest rate announcement.

EUR/USD

After the interest rate announcement, EUR/USD held above the daily SMA 200 and the 1.0800 point yesterday. However, the pair moved lower today and fell below both support points. If the pair continues to move down until the weekly close, there will be a chance of a decline towards 1.0650. On the other hand, if the pair can stay above the daily SMA 200 point until the end of the weekly closing then the upward movement can continue towards 1.0900 and 1.1000.

Today’s critical levels to watch:

Support: 1.0800, 1.0650, 1.0500

Resistance: 1.0900, 1.1000, 1.1120, 1.1185, 1.1300, 1.1360

GBP/USD

GBP/USD is still experiencing selling pressure but can hold near 1.2800. As previously written, if the pair continues to weaken then the 1.2625 point and daily SMA 200 can again become support points that traders can use to add to long positions. For now, traders will continue to use the 1.2800 point and the support point below it to accumulate long positions.

Today’s critical levels to watch:

Support: 1.2800, 1.2625, 1.2200, 1.2100, 1.2000

Resistance: 1.3000

USD/JPY

USD/JPY fell below 150.00 today but managed to recover and return to above its opening point. For now, the pair can move up to test the daily SMA 200 and also 151.80. Consolidation may occur between 150.00 – 151.80 and traders will prepare for a further decline in the pair as the BOJ is likely to continue raising interest rates.

Today’s critical levels to watch:

Support: 150.00, 147.00, 145.00, 142.00, 141.00

Resistance: 155.00

AUD/USD

AUD/USD bounced from 0.6500 and managed to close near its opening point. The pair is generally still bearish but is likely to move sideways not far from 0.6500 for now. If an increase occurs, the pair needs a close above the daily SMA 200 to confirm a change in direction to bullish.

Today’s critical levels to watch:

Support: 0.6500, 0.6350, 0.6170, 0.6000

Resistance: 0.6700, 0.6750, 0.6820, 0.7000