USDX (USD Index)
The U.S. dollar index moved up to reach the daily SMA 200 and is currently testing that point. There hasn’t been a strong rejection reaction so traders will still be waiting. If the index actually moves up and forms a higher swing high point then the bullish trend can continue. Conversely, if a bearish rejection occurs it will form a lower swing high point which confirms the continuation of the bearish trend.
EUR/USD
EUR/USD has reached 1.0900 at the moment and is trying to bounce off that support. The pair is still under bearish pressure and there is a possibility of further weakness towards the 1.0800 point and the 200 SMA. For now, traders should wait for further reactions near the support and be prepared to enter long positions in case of a strong bullish reaction. Without a strong bullish reaction and the formation of a higher swing high point, the pair’s situation will still be bearish.
Today’s critical levels to watch:
Support: 1.0900, 1.0800
Resistance: 1.1000, 1.1120, 1.1185, 1.1300, 1.1360
GBP/USD
GBP/USD bounced off 1.2625 and started moving up. The pair’s consolidation between 1.2625 – 1.2800 is still ongoing for now and there is no closure outside this area yet. When closed occurs outside the 1.2625 – 1.2800 area, the next movement direction will be confirmed. For now, traders will continue to take advantage of the declines as opportunities to enter 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 continues its strengthening above 145.00 and will try to target 147.00 next. There are no lower swing highs and lower swing lows formed so the direction of the trend is still bullish. Traders should not enter short positions for now as long as the pair continues to form higher swing highs and swing lows.
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 continued its weakness below 0.6500 and no bullish reaction has formed so far. The bearish situation will continue and traders should not enter long positions until the pair manages to return above 0.6500. If the bearish trend continues, it is possible that the next lower swing high point will be formed near the 0.6700 – 0.6750 area.
Today’s critical levels to watch:
Support: 0.6500
Resistance: 0.6700, 0.6750, 0.6820, 0.7000