USDX (USD Index)
The U.S. dollar index had experienced a decline but now the index looks to be moving up and will try to continue its upward movement. There is little room for the index to rise towards the daily SMA 200 and 103.50. When the index reaches that point and produces a bearish reaction it is confirmation for traders to enter a short position on the U.S. dollar. However, if a close above the daily SMA 200 occurs then the trend situation may change and traders will be watching for a further reaction.
EUR/USD
EUR/USD opened above 1.1000 points in this week’s trading. However, the pair immediately experienced bearish pressure. The pair is likely to continue consolidation between 1.0900 – 1.1000 for now. Traders will wait for the close outside the area to confirm the next movement direction. Even though it is bearish, in the long term the trend direction is bullish and the point from daily SMA 200 to 1.1000 can be an area where traders enter long positions.
Today’s critical levels to watch:
Support: 1.1000
Resistance: 1.1120, 1.1185, 1.1300, 1.1360
GBP/USD
GBP/USD is in the 1.2625 – 1.2800 area and will now continue its consolidation. The direction of the trend is bullish and as long as there are no lower swing lows below 1.2625 then the pair can immediately continue strengthening. However, if the pair is extending the bearish movement then the daily SMA 200 could be a place where traders may consider entering long positions.
Today’s critical levels to watch:
Support: 1.2625, 1.2200
Resistance: 1.2800, 1.3000, 1.3250, 1.3300, 1.3330
USD/JPY
USD/JPY is moving down and almost reaches 141.00. The pair is currently waiting for the formation of a lower swing high point or a higher swing high point. If the pair forms a lower swing high and then drops below 137.70 then the direction of the trend will be bearish in the long term.
Today’s critical levels to watch:
Support: 141.00, 140.00, 139.30, 137.70, 133.00
Resistance: 145.00, 147.00
AUD/USD
AUD/USD is on a weakening path towards 0.6500 and there is no strong indication of a reversal yet. The bullish movement occurred for 2 days but it might be a temporary reaction only before further downside. If the pair continues to weaken and manages to form a lower swing low then the direction of the trend will be bearish for the long term.
Today’s critical levels to watch:
Support: 0.6500
Resistance: 0.6700, 0.6750, 0.6820, 0.7000