USDX (USD Index)
Strengthening occurred in the dollar index today after Jerome Powell confirmed that the Fed would be waiting for further data on inflation. As long as inflation remains above 2%, the Fed will continue to maintain a high interest rate policy. Because of this, the dollar index increased but even this may only be a temporary reaction. Still the same as before, the index will continue to be under bullish pressure ahead of the announcement of interest rates by the Fed in the following month.
EUR/USD
EUR/USD pushed down below the 1.0800 point and also the daily SMA 200. But now the pair seems to be recovering and will try to close near these two points at the end of week. As long as these two points can be maintained, in the near term there will be an upward bounce. For now, traders will be accumulating long positions near these two points.
Today’s critical levels to watch:
Support: 1.0800
Resistance: 1.0900, 1.1000, 1.1120, 1.1185, 1.1300, 1.1360
GBP/USD
GBP/USD closed below 1.2625 and continued its decline towards the daily SMA 200. However, the bearish pressure seems to be easing and the pair is trading near its opening point. If the pair can bounce back and close above 1.2625 in late trading then the situation could turn bullish in next week’s trading. However, if the pair is still moving downwards then traders will wait near the daily SMA 200 for 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 is now moving up towards the point of 147.00. The pair’s movement range is between 145.00 – 147.00 and traders will now be waiting for a close outside that range. Still the same as before, as long as the pair continues to form higher swing highs and higher swing lows, the trend of the pair is still bullish. We recommend that traders wait for strong bearish pressure before starting to enter short positions.
Today’s critical levels to watch:
Support: 145.00, 141.00, 140.00, 139.30, 137.70, 133.00
Resistance: 147.00
AUD/USD
AUD/USD is still pushing lower today after yesterday’s bearish close. Broadly speaking, the pair experienced rejection from a point near 0.6500 and now the bearish trend is likely to continue. The formation of a lower swing low point or the next higher swing high point will confirm the pair’s direction of movement.
Today’s critical levels to watch:
Support:
Resistance: 0.6500, 0.6700, 0.6750, 0.6820, 0.7000