USDX (USD Index)
The U.S. dollar index is still hovering near the daily SMA 200 point and there is no strong reaction. Yesterday’s Fed meeting did not produce a reaction on the index so traders will assume the sideway movement will continue. Will the dollar index still move up above the daily SMA 200? Or will a bearish bounce occur as March approaches and the bearish trend continues?
EUR/USD
EUR/USD bounced back from 1.0800 and returned above the daily SMA 200. There are no changes to the strategy that traders can apply. The area between 1.0800 and the daily SMA 200 is a place where traders will continue to accumulate long positions with a stop point below the previous swing low point. The trend is still bullish and the pair just needs a catalyst to move up and that will probably happen in March.
Today’s critical levels to watch:
Support: 1.0800, 1.0650, 1.0500
Resistance: 1.0900, 1.1000, 1.1120, 1.1185, 1.1300, 1.1360
GBP/USD
GBP/USD bounced from 1.2625 so there has been no movement out of the 1.2625 – 1.2800 area. Consolidation will continue between 1.2625 and 1.2800 so traders will continue to utilize this range for sideway strategies. If the pair is still moving down then the daily SMA 200 point is a place where traders can consider a long position.
Today’s critical levels to watch:
Support: 1.2625, 1.2200, 1.2100, 1.2000
Resistance: 1.2800, 1.3000
USD/JPY
USD/JPY fell below 147.00 today which is a bearish condition where 145.00 and the daily SMA 200 will be targets for declines. The bearish trend is expected to continue for the long term below the daily SMA 200 and form a lower swing low point. The current bearish trend will be canceled when the pair manages to form a higher swing high point above 152.00.
Today’s critical levels to watch:
Support: 145.00, 142.00, 141.00
Resistance: 147.00, 150.00
AUD/USD
AUD/USD moved down sharply and almost touched 0.6500 today. However, the bearish pressure did not last long as the pair rose again and is currently trading near the opening point. If the pair can immediately move above the daily SMA 200 and form a higher high point then the bullish trend will continue again.
Today’s critical levels to watch:
Support: 0.6500, 0.6350, 0.6170, 0.6000
Resistance: 0.6700, 0.6750, 0.6820, 0.7000