USDX (USD Index)
U.S dollar index is moving lower today after it test the broken swing low level. The index has not shown strong bearish movement as it hover near previous day’s low. Traders will wait for further confirmation now. Will the index continue upward, close above daily SMA 200 and print new higher swing high to reverse the bearish trend? Alternatively, will it start moving lower from the current level to resume the bearish trend?
EUR/USD
EUR/USD is consolidating near the 1.1820 level now and will attempt to resume the bullish movement. However, if the pair pushed lower again, then traders will wait near the 1.1710 level for bounce reactions. On the lower side, a close below the 1.1580 level is confirmation that the trend will turn bearish.
Today’s critical levels to watch:
Support: 1.1710, 1.1580, 1.1500, 1.1360, 1.1300
Resistance: 1.1820, 1.2000
GBP/USD
GBP/USD closed below 1.3600 support level yesterday but immediately recover above it today. The pair will attempt to close the day above 1.3600 to create a false breakout situation. If the pair manage to close above the level, then there is chance of bullish continuation next week. Otherwise, we might see another bearish attempt to target the 1.3450 level.
Today’s critical levels to watch:
Support: 1.3450, 1.3330, 1.3300, 1.3250
Resistance: 1.3600, 1.3835, 1.40000
USD/JPY
USD/JPY has not shown weakness in the current upward movement. It has printed a lower swing low, which mean a lower swing high near the current level might be confirmation that the bearish trend will resume. Under current situation, traders better wait for more confirmation. On the upside, if the pair manage to print new higher swing high, then the bearish scenario cancelled.
Today’s critical levels to watch:
Support: 155.50, 155.00, 153.00, 151.00
Resistance: 158.89, 160.00
AUD/USD
AUD/USD trading back and forth near the 0.7000 level. Yesterday it made a bearish close below it, and today it has returned above the 0.7000 level. We expect more consolidation near the 0.7000 level with upside bias. On the upside, 0.7160 is the next target to watch. On the lower side, 0.6750 – 0.6820 area is the place to look as bearish correction target.
Today’s critical levels to watch:
Support: 0.6820, 0.6750, 0.6700, 0.6600
Resistance: 0.7000, 0.7160