USDX (USD Index)

The bearish pressure on the U.S dollar index subsided and the index managed to close the day above 95.50. There is no bearish follow-through as the index started moving higher today. However, the upward movement is also limited at the 96.10 resistance level. Traders will expect the current movement will continue to range with high volatility as the market waiting for further data on inflation and interest rate.

Yesterday, CPI data show hotter than expected numbers which could become a sign that the Fed will increase-rate aggressively. If the next CPI number continues to increase then we might see major bearish development in the global market.

EUR/USD

EUR/USD tested the level near 1.1500 and turned lower yesterday. The pair closed at the opening level after a moderate swing up and down. It seems the market is undecided on the next direction. If the pair continues moving lower, then 1.1300 – 1.1360 is the area to watch as a support area. No conclusion yet on the next direction, it is better to continue to stay sideline for now.

Today critical levels to watch:

Support: 1.1360, 1.1300, 1.1185

Resistance: 1.1500

GBP/USD

GBP/USD stuck below the daily SMA 200 and 1.3600 resistance level. The pair range might continue to tighten for now while traders wait for more reactions. A close above daily SMA 200 followed by the formation of a higher swing high will confirm a bullish trend. Meanwhile, a bearish close below 1.3450 or below the previous swing low will trigger a bearish continuation.

Today Critical level to watch:

Support: 1.3450, 1.3330, 1.3300

Resistance: 1.3600, 1.3835

USD/JPY

USD/JPY trading near the 115.90 without new higher swing high printed yet. The pair keep attempting to move higher as of now. There is no major reaction from the resistance level yet. We might see the pair stick near 115.90 and close near it at the end of the week. On the bigger view, the current trend is bullish which favors a bullish breakout above 115.90.

Today critical levels to watch:

Support: 115.00, 114.50, 113.00, 112.00

Resistance: 115.90

AUD/USD

AUD/USD swing wildly near 0.7160. The pair might have closed above the level but it has a hard time continuing upward. At the current time, the pair might continue trading near 0.7160 and waiting for further reaction. On the upside, the pair could continue upward to test 0.7300 – 0.7330 and the daily SMA 200. On the other hand, a close below 0.7160 could trigger a bearish continuation.

Today critical levels to watch:

Support: 0.7160, 0.7000

Resistance: 0.7300, 0.7330, 0.7450