USDX (USD Index)
U.S dollar index printed a bearish close yesterday and got near the 100.00 level. There is a bearish continuation today but the bearish pressure has reversed and the index is trading above the opening level. No change to the bearish outlook but if the index starts moving upward then 103.82 is the level to watch as a resistance level. Traders might want to stick with short positions in the U.S. dollar as long as the index continues printing a new lower low and lower high.
EUR/USD
EUR/USD closed higher yesterday near the 1.1000 resistance level. The pair extended the upward movement today but experience bearish rejection. If the pair start moving lower then 1.0800 and 1.0650 is the bearish targets to watch. Traders will use each bearish correction as a chance to enter long positions at a lower level.
Today’s critical levels to watch:
Support: 1.0800, 1.0650, 1.0339, 1.0000, 0.9500
Resistance: 1.0900, 1.1000
GBP/USD
GBP/USD printed a bullish close yesterday but there is no bullish continuation in today’s trading session. The pair trading lower and will attempt to retest the 1.2000 – 1.2200 area. When the retest happens and there are major bullish reactions then traders could enter long positions. On the other hand, if a bearish breakout happens and the pair print a new lower low then the trend will turn bearish again.
Today’s critical levels to watch:
Support: 1.2000, 1.1450
Resistance: 1.2100, 1.2200
USD/JPY
USD/JPY resume the bearish trend inside the bearish channel. There is no change to the situation and traders will continue to hold short positions. As long as the pair continue printing a new lower low and lower high, traders will continue to hold the short positions. On the upside, if the pair could break out above the channel then it will target the green box area and the daily SMA 200.
Today’s critical levels to watch:
Support: 125.00
Resistance: 130.00
AUD/USD
AUD/USD extended the bullish movement and closed near the 0.7160 resistance level. As mentioned in the previous analysis, if the pair could close above 0.7160 with strong bullish momentum then the bullish trend could continue. On the lower side, traders could use 0.7000 and 0.6820 as a place to enter long positions when a bearish correction happen.
Today’s critical levels to watch:
Support: 0.6750, 0.6700, 0.6500, 0.6000
Resistance: 0.6820, 0.7000