USDX (USD Index)
U.S dollar index bearish movement halted near the 95.50 level. Traders seem to prepare for this week’s U.S inflation data release. The next direction of the index will depend on the result of the inflation data. Higher than expected inflation numbers could bring the global market down but support a strong U.S dollar environment.
If the index continues moving lower, then 94.00 – 94.30 is the area to watch for a possible bounce.
EUR/USD
EUR/USD building bullish pressure but the pair reverse the direction near 1.1500. At the current time, the pair is under bearish pressure and looks will attempt for a correction toward 1.1300 – 1.1360. We need a higher high to confirm further bullish movement to target SMA 200. On the lower side, a close below 1.1300 is a bearish continuation confirmation.
Today critical levels to watch:
Support: 1.1360, 1.1300, 1.1185
Resistance: 1.1500
GBP/USD
GBP/USD shows a bearish reaction after the test on daily SMA 200 also 1.3600. The pair looks trading lower but no test on the 1.3450 support level yet. We could see a triangle formation on the chart now which means the situation is sideway. Traders will wait for a breakout and the formation of either higher high or lower low to confirm the next direction.
Today Critical level to watch:
Support: 1.3450, 1.3330, 1.3300
Resistance: 1.3600, 1.3835
USD/JPY
USD/JPY has not reached the 115.90 resistance level yet. The pair currently hanging below the level after the bounce from the 114.50 support level. Will the pair continue its bullish movement and target a higher swing high? Alternatively, will it start moving lower again and target the 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 stuck near 0.7160 but no bearish continuation seen yet. The pair is hanging near 0.7160 and might continue trading sideway until the release of U.S inflation data this week. Traders will continue waiting for either a close above 0.7160 or below 0.7000 to confirm the next direction.
Today critical levels to watch:
Support: 0.7000
Resistance: 0.7160, 0.7300, 0.7330, 0.7450