USDX (USD Index)
The U.S. dollar index fell sharply after the release of US employment data which was much weaker than expected. Because the data released was very far from estimates, this was a strong impetus for the Fed to lower interest rates at its next meeting immediately. The weakening of the U.S. dollar index formed a lower swing low point, but a weakening of the U.S. stock market also accompanied this weakening. The situation is still quite volatile and can be considered very anomalous because all opposing instruments fell simultaneously. Even the price of gold has weakened. Only the currency opposite the U.S. dollar is experiencing strengthening at this time.
Traders should wait for the current volatile situation to subside to get an idea of the next direction of movement. Or traders can hold on to the assumption that the U.S. dollar will weaken in the next year and plan to enter long-term positions against it.
EUR/USD
EUR/USD jumped above 1.0900, signaling the start of a new bullish trend. This bullish movement will target 1.1000 and above due to increasingly strong confirmation that the trend has changed. If a trader missed the opportunity to enter a long position during the previous bearish correction, now they can only wait for the bearish correction to occur after the current bullish movement reaches the resistance point.
Today’s critical levels to watch:
Support: 1.0900, 1.0800, 1.0650, 1.0500
Resistance: 1.1000, 1.1120, 1.1185, 1.1300, 1.1360
GBP/USD
GBP/USD fell below 1.2800 yesterday, but the bearish movement on the pair only lasted temporarily and now the pair has returned to near 1.2800. As written previously, traders will use the support points 1.2625, daily SMA 200, and 1.2800 to accumulate long positions. There is a possibility that the decline will not reach 1.2625 and the daily SMA 200 but traders can continue to use the points that have been written. As long as the pair forms a higher swing high point and a higher swing low point, the trend will continue to be bullish at this time.
Today’s critical levels to watch:
Support: 1.2800, 1.2625, 1.2200, 1.2100, 1.2000
Resistance: 1.3000
USD/JPY
USD/JPY does not provide opportunities for bull traders to reverse the trend direction of the pair. The sharp decline continues where the pair has reached the current point of 147.00. In the absence of a bullish reaction, the pair can easily reach 145.00. Everything is in line with the intervention carried out by the BOJ and also the increase in interest rates that has been carried out. Just like the previous strategy, traders will wait for a bullish correction in the pair for the opportunity to enter a short position at the resistance point.
Today’s critical levels to watch:
Support: 150.00, 147.00, 145.00, 142.00, 141.00
Resistance: 155.00
AUD/USD
AUD/USD is holding near 0.6500 and is now seen moving flat. The pair is waiting for a bounce reaction to test the daily SMA 200 point. If the pair can rise and close above the daily SMA 200 point then the trend direction can change for the short – medium term. Traders can use the 0.6500 points as a place to enter long positions, especially after the release of weaker-than-expected US employment data which will have a bearish impact on the US dollar.
Today’s critical levels to watch:
Support: 0.6500, 0.6350, 0.6170, 0.6000
Resistance: 0.6700, 0.6750, 0.6820, 0.7000