USDX (USD Index)
U.S dollar index hanging near the high and waiting for further reactions. The Fed Jerome Powell will give a speech in Jackson Hole. We might see some movement with volatility. Under the current situation, traders might want to stay sideline and wait for a bearish correction to enter long positions in the U.S dollar.
Traders who already have long positions when the index is near the 105.00 – 105.50 area could continue to hold the positions for now.
EUR/USD
EUR/USD holding out near the parity level after the close below it. There is no major capitulation below the parity level yet which might indicate further weakness. However, if the pair could close above the parity level then we might see upward movement to test the previous swing high.
Today’s critical levels to watch:
Support:
Resistance: 1.0000, 1.0339, 1.0650, 1.0800, 1.0900
GBP/USD
GBP/USD hanging near the low after a new lower low was printed. The pair might continue trading sideways and wait for the market reactions after the Jackson Hole speech. If the pair trade upward then we will see a retest of the 1.2000 – 1.2200 area. Meanwhile, a bearish continuation will target the 1.1450 support level.
Today’s critical levels to watch:
Support: 1.1450
Resistance: 1.2000, 1.2100, 1.2200
USD/JPY
USD/JPY trend is bullish and there is no change to the situation yet. The pair is expected to continue the current bullish movement and print a new higher high. However, if a bearish correction happens again then traders will wait near the level around 135.50 for a chance to enter long positions.
Today’s critical levels to watch:
Support: 135.19, 135.00, 131.47
Resistance: 140.00
AUD/USD
AUD/USD moving upward and testing the 0.7000 level today. If the pair could breakout above the level then it will target 0.7160 and daily SMA 200. As long as there is no close above both levels, the pair will continue its bearish trend. Failure to print a new lower low will form a triangle pattern on the daily chart.
Today’s critical levels to watch:
Support: 0.6820, 0.6750, 0.6700
Resistance: 0.7000, 0.7160, 0.7300