USDX (USD Index)
The bearish pressure on the U.S. dollar index managed to push the index down below the daily SMA 200 and close below it at the end of 2022. The index is currently under a bearish trend and might continue printing a new lower low. Traders will avoid long positions in the U.S. dollar for at least until the index return above the daily SMA 200. If the index extends the bearish movement then it will target the 100.00 support level next.
EUR/USD
EUR/USD reached the 1.06500 resistance level and currently consolidating near it. There is no major movement yet from the level. If the pair extends the bullish movement then it will target the 1.0800, 1.0900, and 1.1000 resistance levels. On the other hand, if the pair start a new bearish correction then traders could use the daily SMA 200 or 1.0339 as a level to enter long positions when bullish reactions happen.
Today’s critical levels to watch:
Support: 1.0339, 1.0000, 0.9500
Resistance: 1.0650
GBP/USD
GBP/USD breakout above the 1.2000 – 1.2200 area and extended the bullish movement. The pair has undergone a bearish correction and currently trades near the 1.2000 – 1.2200 area again. At the current time, consolidation is happening near the 1.2000 – 1.2200 area. Traders will observe closely the pair reactions near the area for now. If the pair could bounce with strong bullish momentum then the bullish trend will continue. On the other hand, a close below 1.2000 might become a bearish confirmation.
Today’s critical levels to watch:
Support: 1.2200, 1.2100, 1.2000
Resistance: 1.2625, 1.2800
USD/JPY
USD/JPY has entered a new bearish trend after it failed to maintain its position above the daily SMA 200. The situation was incited by a change of policy by BOJ. It seems the bearish trend will persist and traders better avoid long positions until the pair return above the daily SMA 200. Each bullish movement is a correction movement where traders could enter short positions when the bullish movement loses upward pressure.
Today’s critical levels to watch:
Support: 139.30, 135.19, 135.00
Resistance: 140.00, 145.00, 150.00
AUD/USD
AUD/USD got rejected from the daily SMA 200 but found support inside the 0.6700 – 0.6820 area. The pair currently consolidating inside the area and will wait for further reactions. On the upside, the pair might extend the upward movement to retest the daily SMA 200. As long as there is no close above the daily SMA 200 and a new higher high, AUD/USD long-term trend will continue to stay bearish.
Today’s critical levels to watch:
Support: 0.6750, 0.6700, 0.6500, 0.6000
Resistance: 0.6820, 0.7000