USDX (USD Index)
U.S dollar index came under bearish pressure after the release of U.S inflation data. The inflation numbers cool down which means the economy might return to recovery track and the Fed might become less aggressive. However, the bearish pressure on the U.S dollar index has not printed a close below 105.00.
If the index could maintain the position above the level until the end of the week then we might see a bullish continuation.
EUR/USD
EUR/USD traded upward and reached the 1.0339 resistance level. The upward target has been reached and no close above it yet. If the pair could close above the level then we will see a bullish continuation toward 1.0650. We think a major bearish reaction might happen, leading the pair lower to retest the parity level.
Today’s critical levels to watch:
Support: 1.0000
Resistance: 1.0339, 1.0650, 1.0800, 1.0900
GBP/USD
GBP/USD closed higher above the 1.2200 level. However, the bullish close is not far from the 1.2000 – 1.2200 area which means a bearish reversal could happen. If the pair closes below 1.2200 at the end of the week then we will see further consolidation between 1.2000 – 1.2200. On the other hand, further upward movement which prints a higher high will confirm a bullish continuation toward the daily SMA 200.
Today’s critical levels to watch:
Support: 1.2000, 1.1450
Resistance: 1.2100, 1.2200
USD/JPY
USD/JPY traded lower yesterday after the release of inflation data. It seems the situation turn bearish once again and a test on the 161.00 level might happen. No lower low printed yet which means the current bearish movement could reverse anytime. If the pair start moving upward again and print a higher high then the bullish trend will continue.
Today’s critical levels to watch:
Support: 131.47
Resistance: 135.00, 135.19
AUD/USD
AUD/USD launched upward and closed above 0.7000. The pair is on the path upward to test the 0.7160 and daily SMA 200. Traders will monitor the pair reactions near both levels. If the pair get rejected with strong bearish reactions then traders could enter short positions with 0.7000 as initial target.
Today’s critical levels to watch:
Support: 0.6820, 0.6750, 0.6700
Resistance: 0.7000, 0.7160, 0.7300