USDX (USD Index)
The U.S. dollar index strengthened again after the release of inflation data which turned out to be higher than expected. The bullish trend seems to be continuing at this time and traders can only wait for the index to lose its bullish pressure and return below the daily SMA 200 point. Traders will still wait for an opportunity for a trend reversal on the dollar index for the opportunity to take a short position.
EUR/USD
EUR/USD weakened again below 1.0800 and will try to continue its weakness towards 1.0650. As previously written, if the pair moves down then the support point of 1.0650 will be of concern as well as a place for long position opportunities. The return of the pair above the daily SMA 200 point will be a bullish confirmation of the reversal.
Today’s critical levels to watch:
Support: 1.0650, 1.0500
Resistance: 1.0800, 1.0900, 1.1000, 1.1120, 1.1185, 1.1300, 1.1360
GBP/USD
GBP/USD formed a bearish reaction near 1.2625 and is now moving lower towards the daily SMA 200. Traders will again wait for a reaction near the daily SMA 200 for opportunities for a bounce. When a bullish bounce occurs at that point, traders can enter a long position. However, if there is a close below the daily SMA 200 point, there is a chance that bearish pressure will continue for some time.
Today’s critical levels to watch:
Support: 1.2625, 1.2200, 1.2100, 1.2000
Resistance: 1.2800, 1.3000
USD/JPY
USD/JPY rose and closed above 150.00 yesterday. This increase still does not confirm the continuation of the long-term bullish trend. When the pair can make a higher swing high point then that is confirmation for the continuation of the bullish trend. Still the same as before, if there is a reversal and closes below 150.00 then the situation may turn bearish.
Today’s critical levels to watch:
Support: 145.00, 142.00, 141.00
Resistance: 147.00, 150.00
AUD/USD
AUD/USD fell below 0.6500 with quite a strong bearish momentum yesterday. The pair also formed a lower weekly point compared to the previous week. This bearish situation did not continue in today’s trading and the pair is trying to return to 0.6500. To reverse the current bearish direction, the pair needs to make a close above the daily SMA 200 which is unlikely to happen anytime soon.
Today’s critical levels to watch:
Support: 0.6500, 0.6350, 0.6170, 0.6000
Resistance: 0.6700, 0.6750, 0.6820, 0.7000