USDX (USD Index)
U.S dollar index was under bearish pressure but managed to stage a bullish rebound today. The index currently moving upward with strong bullish momentum. If the index could maintain the bullish pressure and extend the upward movement then traders could expect continuation toward the daily SMA 200. On the other hand, if the index reverses the direction again then we might see a bearish continuation to print a new lower low.
EUR/USD
EUR/USD fell with strong bearish momentum today. The pair might start a bearish correction to target the daily SMA 200 or the 1.0339 support level. Traders will use the moment to enter short positions with tight stop above the previous swing high. On the lower side, if the pair could bounce from the daily SMA 200 or 1.0339 then traders could enter long positions targeting a new higher high.
Today’s critical levels to watch:
Support: 1.0339, 1.0000, 0.9500
Resistance: 1.0650
GBP/USD
GBP/USD breakout below 1.2000 which is not a good sign for the bull. However, the pair still need to close below the level to confirm a bearish scenario. If the pair could close the day above 1.2000 then the bearish scenario is canceled. On the other hand, if the pair could add more distance from 1.2000 and close below it then traders will prepare for a bearish continuation to target 1.1450 or lower.
Today’s critical levels to watch:
Support: 1.2200, 1.2100, 1.2000
Resistance: 1.2625, 1.2800
USD/JPY
USD/JPY trend has turned bearish after the breakout and closed below the daily SMA 200. Aside from the technical event, BOJ also confirms that the pair fundamental has changed and the Japanese Yen is set for a new bullish recovery. Under the current situation, traders will only enter short positions when a bullish correction happens. On the upside, the pair need to recover and close above the daily SMA 200 to reverse the current bearish trend.
Today’s critical levels to watch:
Support: 139.30, 135.19, 135.00
Resistance: 140.00, 145.00, 150.00
AUD/USD
AUD/USD fell from the 0.6820 level with strong bearish momentum. The pair managed to reach the 0.6700 support level and bounce from it. As long as the pair stays inside the 0.6700 – 0.6820 area then the consolidation will continue. Traders will monitor the pair movement inside the range and continue to apply the range trading strategy. However, it is better to wait until the bearish momentum subsides before entering long positions.
Today’s critical levels to watch:
Support: 0.6750, 0.6700, 0.6500, 0.6000
Resistance: 0.6820, 0.7000