USDX (USD Index)

U.S dollar index confirmed the bullish engulfing pattern by another bullish close yesterday. The index closed near the top of the blue box area and will attempt to break out above it. If the index could breakout and close above the top of the blue box area then traders will expect a bullish continuation toward 92.00 – 93.00.

EUR/USD

The direction of EUR/USD currently pointed to the bearish side. The pair made a close inside the 1.2000 – 1.2070 area and expected to test the 1.2000 support level soon. If the pair breakout and close below the level then we will expect a bearish continuation toward 1.2000 – 1.2070.

today critical levels to watch:

Support: 1.2070, 1.2000, 1.1820

Resistance: 1.2200, 1.2300, 1.2500

GBP/USD

GBP/USD pressured lower but maintain the position above the 1.3835 level. We expect the pair to continue its bullish movement toward 1.4000. However, if the pair makes a bearish close below 1.3835 then a bearish correction toward 1.3600 might happen.

Today Critical level to watch:

Support: 1.3835, 1.3600, 1.3450

Resistance: 1.4000

USD/JPY

USD/JPY made a bearish close yesterday after four consecutive bullish closes. The pair seems will move lower to test the daily SMA 200. When a test on the averages happens and there is a bullish reaction then traders could enter long positions.

Today critical levels to watch:

Support: 105.50, 105.00

Resistance: 106.00, 106.70

AUD/USD

AUD/USD pushed lower below 0.7750 but the pair could recover part of its losses and close near the level at the end of the day. The pair will wait for further confirmation on where it will move next. Without any close below 0.7750, traders will continue to hold long positions and expect a breakout above 0.7800.

Today critical levels to watch:

Support: 0.7750, 0.7700, 0.7640, 0.7550, 0.7500

Resistance: 0.7800, 0.8000