USDX (USD Index)

U.S dollar index has not moved much from the 103.50 resistance level. The index is trading sideways and seems waiting for the release of inflation data this week. If the inflation numbers show lower numbers than expected then we will see the index resume the bearish movement. On the other hand, a higher reading could bring the index higher to test the daily SMA 200. It is better to stay sideline or maintain short positions in the U.S. dollar for now.

EUR/USD

EUR/USD stays above the 1.0900 handle and might extend the bullish movement toward the 1.1000 resistance level. Traders will continue to use the 1.0800 and 1.0900 levels as places to enter long positions. It is better to continue to accumulate long positions as the trend turns bullish. However, if the pair moves lower and closes below the daily SMA 200 then we might see a change in the trend to bearish.

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 rises from the daily SMA 200 and tests the 1.2800 level. The pair is currently inside the 1.2625 – 1.2800 area where traders could continue to accumulate long positions. When the pair closes above 1.2800, we will expect a bullish continuation immediately toward the 1.3000 resistance level. A close below the daily SMA 200 and a new lower swing low will cancel the bullish outlook in the pair for the medium-long term.

Today’s critical levels to watch:

Support: 1.2625, 1.2200, 1.2100, 1.2000

Resistance: 1.2800, 1.3000

USD/JPY

USD/JPY sticks near the 147.00 level for now and there is no major movement away from the level. Traders will continue to monitor the pair movement near 147.00 for now. If the pair extends the bullish correction toward 150.00 and 151.50 then traders could use it as a chance to enter short positions at a higher level. On the lower side, we expect the pair to target a new lower swing low.

Today’s critical levels to watch:

Support: 142.00, 141.00

Resistance: 145.00, 147.00, 150.00, 155.00

AUD/USD

AUD/USD trade near the daily SMA 200 and currently keeps testing the averages. As mentioned before, if the pair could close above the averages then there is a chance of a bullish reversal to target 0.6700. On the lower side, a close below 0.6500 will trigger a bearish continuation to target a new lower swing low. No strong confirmation on the pair’s next direction, however, in September – October we might see major movement in the U.S. 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