USDX (USD Index)
The overall movement of the U.S. dollar index turned bullish before the last FOMC meeting this year. Traders are betting on a rate cut of 25 bps and further announcements for rate cuts next year. As the index’s bullish structure has not broken yet, it is better to stay out of short positions in the U.S. dollar. Traders might want to wait until the FOMC meeting announcement to get a better view of the next movement.
EUR/USD
EUR/USD is trading near the 1.0500 level right now before the Fed FOMC meeting. The pair might trade sideways until the interest-rate announcement. At the current time, the pair location is also not ideal for placing positions. Traders should wait until the pair reaches 1.0650 or 1.03390 before deciding to enter positions. Or wait until the interest-rate announcement reactions for better clarity.
Today’s critical levels to watch:
Support:
Resistance: 1.0650, 1.0800, 1.0900, 1.1000, 1.1120
GBP/USD
GBP/USD reached the 1.2625 support level and there is a bullish reaction today. The pair is trading slightly higher but stayed inside the previous day’s range. It might consolidate near the 1.2625 level for now while waiting for further reactions. If the pair could bounce upward with strong bullish momentum then the consolidation between 1.2625 – 1.2800 will continue. Traders will wait for a breakout and close outside of the area to get confirmation on the next trending movement.
Today’s critical levels to watch:
Support: 1.2625, 1.2200
Resistance: 1.2800, 1.3000
USD/JPY
USD/JPY extend the bullish movement and is set to target a new higher swing high. The pair printed a higher swing low in the latest bearish attempt which means the situation is neutral. The next higher swing high or lower swing low might become the confirmation of the next direction of the pair. Under the current situation, traders could wait near the extreme high or extreme low for reactions to enter positions.
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 on the path lower to target the 0.6300 support level. The pair currently trading near the previous swing low and there is no strong reactions. If the pair could extend the bearish movement and print more lower swing low then there is no change to the bearish trend yet. On the upside, the pair needs to print a higher swing high or move above 0.6600 to turn the trend bullish.
Today’s critical levels to watch:
Support: 0.6700, 0.6500
Resistance: 0.6750, 0.6820, 0.7000