USDX (USD Index)
U.S dollar index bounced from the 105.00 support level as expected. The index made a bullish close yesterday which initially confirm a bullish continuation. However, there is no bullish continuation yet in today’s trading session. Traders might stay sidelined for now as the market waiting for the release of U.S job data at the end of the week.
If the index could maintain the bullish pressure and add more gain after the release of job data then traders will prepare for a bullish continuation.
EUR/USD
EUR/USD made a bearish close yesterday before it could reach the 1.0339 resistance level. The pair could continue its bearish movement and target a new lower low below the parity level. We think the bearish movement is needed before any significant bullish reversal materializes. However, a close above 1.0339 will cancel the bearish outlook.
Today’s critical levels to watch:
Support: 1.0000
Resistance: 1.0339, 1.0650, 1.0800, 1.0900
GBP/USD
GBP/USD closed below the 1.2200 level which means the consolidation between 1.2000 – 1.2200 will continue. Traders will wait for a close outside of the range to determine the next direction. This week’s closing level might provide traders with confirmation on the next direction of the pair.
Today’s critical levels to watch:
Support: 1.2000, 1.1450
Resistance: 1.2100, 1.2200
USD/JPY
USD/JPY printed a bullish close yesterday after a new lower low. The situation is mixed as the pair might trade upward but print a lower high to continue the bearish movement. However, traders could use the moment to enter long positions near the current level with a stop below yesterday’s low.
Today’s critical levels to watch:
Support: 131.47
Resistance: 135.00, 135.19
AUD/USD
AUD/USD got rejected from the 0.7000 resistance level after previously closing above it. The pair might resume the bearish trend to target a level below 0.6700. Traders will monitor the pair closing level at the end of the week. A close above 0.7000 will confirm further upward movement toward 0.7160 and daily SMA 200.
Today’s critical levels to watch:
Support: 0.6820, 0.6750, 0.6700
Resistance: 0.7000, 0.7160, 0.7300