USDX (USD Index)
The movement of the U.S. dollar index is as expected when the index hit 103.82. At the current time, the index shows a bearish reaction from the resistance level and might start a new bearish leg. However, traders expect the index to trade sideway until next week’s U.S. CPI data. The CPI data could become a catalyst for a new bearish leg in the U.S. dollar index. If the index starts moving lower again then 100.00 will become the target to watch.
EUR/USD
EUR/USD bounced from the level near 1.0650 and start moving upward. The pair manage to reach the level near 1.0800 and show a slight bearish reaction today. We might see the pair consolidating between 1.0650 – 1.0800 until next week’s U.S CPI data. If the pair continues moving lower then it will target 1.0339 or the daily SMA 200 next. On the upside, if the pair could close above 1.0800 then we might see another attempt at 1.1000.
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 movement is inside the 1.2000 – 1.2200 range as expected. The pair will keep moving inside the range and waiting for the breakout and close outside of it. We think the pair could continue the bullish trend and will make a bullish breakout. However, if the pair breakout lower and prints a new lower low then the bearish trend is set to continue. Traders will use the moment to accumulate long positions while waiting for a breakout.
Today’s critical levels to watch:
Support: 1.2000, 1.1450
Resistance: 1.2100, 1.2200
USD/JPY
USD/JPY hanging near the green box area and is expected to continue to stick near it until next week’s U.S CPI data. If the pair could continue moving upward then it will target the daily SMA 200. On the other hand, if the pair resume the bearish movement then traders will expect another attempt to print a new lower low.
Today’s critical levels to watch:
Support: 125.00
Resistance: 130.00
AUD/USD
AUD/USD sticks near the 0.7000 resistance level. The pair is limited below the level and might resume the bearish movement toward the 0.6820 or daily SMA 200. Under the current situation, traders will wait near the support level for a chance to enter long positions when bullish reactions happen. On the upside, a close above 0.7160 will confirm a long-term bullish continuation.
Today’s critical levels to watch:
Support: 0.6750, 0.6700, 0.6500, 0.6000
Resistance: 0.6820, 0.7000