USDX (USD Index)
The dollar index did not continue its strengthening at the end of last week and almost erased the gains that occurred after the release of inflation data. If the index continues to weaken, the daily SMA 200 point will experience a test. The bearish trend on the index may be delayed due to the possibility of a rate cut occurring in May or June. Traders will continue to prepare for weakness in the index and enter short positions when a bearish pattern occurs.
EUR/USD
EUR/USD is recovering towards 1.0800. The pair immediately reached the point to test it. If the pair can penetrate this resistance point and also close above the daily SMA 200 then the bullish trend has the opportunity to continue. Meanwhile, there is a possibility that the pair could weaken towards 1.0650. Traders will continue to wait for opportunities for long positions at support points when strong bullish confirmation occurs.
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 is moving up and is now near 1.2625. The pair will try to continue its strengthening and enter the 1.2625 – 1.2800 area. Still the same as before, traders will continue to use the area between daily SMA 200 and 1.2625 as a place to enter long positions. However, if bearish breakout below daily SMA 200 happen then the bearish pressure might continue for medium-term.
Today’s critical levels to watch:
Support: 1.2625, 1.2200, 1.2100, 1.2000
Resistance: 1.2800, 1.3000
USD/JPY
USD/JPY is holding near the 150.00 mark the previous week’s gain. The position of the pair is still bullish but no higher swing high point has been formed. If the pair experiences significant weakness and manages to close below the daily SMA 200 then the bearish situation will continue. Meanwhile, if a higher swing high point is formed, the bullish trend will continue.
Today’s critical levels to watch:
Support: 147.00, 145.00, 142.00, 141.00
Resistance: 150.00
AUD/USD
AUD/USD has erased losses that occurred following the announcement of U.S. inflation data. Strengthening is still ongoing in the pair and is likely to test the daily SMA 200 point. If the pair can rise and close above the daily SMA 200 point then there is a chance that a bullish trend can take place. However, if rejection occurs then the 0.6500 point will be a support point that needs to be paid attention to.
Today’s critical levels to watch:
Support: 0.6500, 0.6350, 0.6170, 0.6000
Resistance: 0.6700, 0.6750, 0.6820, 0.7000