USDX (USD Index)
The bearish pressure on the U.S dollar index finally stopped at the end of the previous week. The U.S dollar index closed the day bullish but no major bullish follow-up yet this week. Traders will wait for inflation data this week which might trigger major volatility. A higher inflation number could mean bearish sentiment in the global market but bullish for the U.S dollar index.
On the lower side, if a bearish breakout below the trendline happens then the index is set to test 94.00 – 94.30 area.
EUR/USD
EUR/USD broke above the 1.1300 – 1.1360 area last week. The pair also extended the bullish movement toward the 1.1500 resistance level. No higher high printed yet on the chart which means the bearish situation has not changed yet. Will the pair continue its climb and target the daily SMA 200? Alternatively, will we see rejection from the current level and bearish continuation toward 1.1000?
Today critical levels to watch:
Support: 1.1360, 1.1300, 1.1185
Resistance: 1.1500
GBP/USD
GBP/USD got rejected from the daily SMA 200 also 1.3600 and under bearish pressure today. The pair might target the 1.3450 support level and test it. Overall, the pair has formed a lower swing high and higher swing low. If the pair form another higher swing low then we are set for triangle consolidation. No clue yet on the next direction, traders might want to wait for U.S inflation data this week.
Today Critical level to watch:
Support: 1.3450, 1.3330, 1.3300
Resistance: 1.3600, 1.3835
USD/JPY
USD/JPY building bullish pressure from the 114.50 support level. The pair will attempt to move upward and retest the 115.90 resistance level. It needs to form a higher swing high to reaffirm the current bullish trend. On the other hand, if the pair start moving lower again and form a lower low then it is set to target 112.00 support level.
Today critical levels to watch:
Support: 115.00, 114.50, 113.00, 112.00
Resistance: 115.90
AUD/USD
AUD/USD bounced from the 0.7160 resistance level and follow the long-term bearish trend. If the pair continues moving lower and close below 0.70000 then the long-term bearish trend is set to continue. On the upside, a higher swing high above 0.7300 – 0.7330 will cancel the current bearish outlook.
Today critical levels to watch:
Support: 0.7000
Resistance: 0.7160, 0.7300, 0.7330, 0.7450