USDX (USD Index)

The U.S. dollar index traded lower last week, but it resumed upward movement this week. It might attempt to target a new higher swing high, and it is better to wait for further clarification. If the index turns lower again, then the previous swing high, the daily SMA 200, will become the support level to watch. As the trend is bullish, traders will assume each bearish correction might last only for a short while.

EUR/USD

EUR/USD is mostly bearish after the bullish correction toward 1.0650 and experienced bearish pressure yesterday. The bearish movement has strong momentum which might bring the pair further lower to target a new lower swing low. On the upside, a close above 1.0650 could become an initial bullish confirmation for movement toward daily SMA 200. As the trend is bearish, traders better avoid long positions for now.

Today’s critical levels to watch:

Support:

Resistance: 1.0650, 1.0800, 1.0900, 1.1000, 1.1120

GBP/USD

GBP/USD pushed lower and retested the 1.2625 level yesterday. The pair might continue under bearish pressure and attempt to break out below 1.2625. On the upside, the pair needs to close above 1.2800 and the daily SMA 200 to initially confirm a bullish reversal. However, we think a bearish reversal could happen near both levels too. If the pair experience bearish rejection near both levels then traders could enter short positions.

Today’s critical levels to watch:

Support: 1.2625, 1.2200

Resistance: 1.2800, 1.3000

USD/JPY

USD/JPY fell below the daily SMA 200 and 150.00 levels despite the strength in the U.S. dollar. It means traders are flocking to the Yen and ramping up for bearish continuation. The pair might extend the bearish trend with or without a bullish correction. If the pair starts a bullish correction then 150.00, 151.80, and daily SMA 200 are the resistance levels to watch for bearish reactions.

Today’s critical levels to watch:

Support: 151.80, 150.00, 147.00, 145.00, 142.00, 141.00

Resistance: 155.00

AUD/USD

AUD/USD is trading near the 0.6500 level with some strong bearish movement. Despite the bearish pressure, the pair managed to hold out and no new lower low was printed on the chart. The pair might continue consolidating near the 0.6500 level for now and traders will wait for further confirmation. Will the pair start moving upward again toward the daily SMA 200? Alternatively, will it resume the bearish trend and print a new lower swing low?

Today’s critical levels to watch:

Support: 0.6700, 0.6500

Resistance: 0.6750, 0.6820, 0.7000