USDX (USD Index)

U.S dollar index continues its weakness for the third day and soon will reach 97.50 support level. No change to the bearish direction yet and traders want to monitor the index reaction at 97.50. If a bullish pattern formed then it is possible the index will reverse and return to its bullish trend.

EUR/USD

EUR/USD bounced from the channel and return above 1.1120 today. The pair erased all of its losses incurred after the Fed announcement. It has more potential upside to test 1.1185. If the resistance level is broken then we might see EUR/USD extending its uptrend toward daily SMA 200. Despite the bullish outlook, it might last for short-term and short positions might be a better choice if 1.1185 hold out against the bullish pressure.

today critical levels to watch:

Support: 1.1120, 1.1100

Resistance: 1.1185, 1.1200, 1.1280

GBP/USD

GBP/USD consolidates at the support 1.2100 and no sign of bounce or breakout yet. The pair expected to continue its consolidation with a bearish bias. Traders will continue to avoid long positions and enter short positions when the price corrected higher.

Today Critical level to watch:

Support: 1.2100, 1.2000

Resistance: 1.2300, 1.2400

USD/JPY

USD/JPY might be under trouble as the pair fell below 106.70. Today it tested 106.10 and no major bullish reaction yet. Without any bullish reaction, we might see further bearish movement toward 105.00 or lower. At the current time, 106.70 – 107.00 is the area to watch for possible short positions.

Today critical levels to watch:

Support: 106.10

Resistance: 106.70, 107.00, 107.40

AUD/USD

AUD/USD touched the bottom of the channel today and no bullish reaction yet. Similar to the previous analysis, AUD/USD might continue its bearish movement and it is better to avoid long positions.

Today critical levels to watch:

Support: 0.6700

Resistance: 0.6800, 0.6900