USDX (USD Index)
The U.S. dollar index managed to stay above the daily SMA 200 point and formed a bullish pin bar pattern yesterday. There is a bullish chance for an upward bounce, but the index does not appear to continue its upward movement today. If the index turns out to experience bearish pressure again and falls below the low point of the candlestick, then the bearish movement can continue again.
EUR/USD
EUR/USD broke above the daily SMA 200 but failed to close above it. The pair appears to be forming a bearish pin bar pattern which could open up opportunities for a decline if confirmed. Traders will wait for the reaction of the pair near the daily SMA 200 point for now. If the pair turns out to be able to move up and close above the daily SMA 200 at the end of this week then the situation will turn bullish.
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 added to the gains by making a close above 1.2625. It seems that the bearish situation due to the release of U.S. inflation data has subsided and the pair is back inside the 1.2625 – 1.2800 area. Consolidation will take place inside this area and traders will wait for a close outside the area to confirm the direction of the next movement.
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 above 150.00 but there is no continuation of the bullish movement in the pair. Currently, consolidation is still underway near 150.00 and traders will wait for further developments. When the pair falls sharply from the current point and forms a close below 150.00, there will be a continuation of the decline toward the daily SMA 200. The formation of a lower swing low point and also a close below the daily SMA 200 will be a bearish confirmation.
Today’s critical levels to watch:
Support: 147.00, 145.00, 142.00, 141.00
Resistance: 150.00
AUD/USD
AUD/USD is trying to move above the daily SMA 200 again today. A close above the daily SMA 200 point will provide fresh air for bull traders for the continuation of the bullish trend. However, if a bearish reversal occurs and the pair falls below the daily SMA 200 with strong bearish momentum then weakness towards 0.6500 could occur again.
Today’s critical levels to watch:
Support: 0.6500, 0.6350, 0.6170, 0.6000
Resistance: 0.6700, 0.6750, 0.6820, 0.7000