USDX (USD Index)
The U.S. dollar index reversed upwards without touching the 100.00 – 100.30 area. The current movement of the index is bullish and has a target at the daily SMA 200 point. The previous decline failed to form a lower swing low point so traders will now observe the bullish movement of the index. As long as the index does not form a higher swing high point, the direction of movement will still be bearish. If a higher swing high point is formed then the situation can become temporarily neutral.
EUR/USD
EUR/USD moved down after the rejection from 1.1120 and has now reached 1.0900. The decline in the pair is a normal situation in line with the increase that has occurred. A bearish correction is underway and traders will wait for the pair’s reaction near the support point for opportunities to add long positions. There is a possibility that the current decline could continue towards the daily SMA 200 point, traders should wait for a bullish reaction before entering a long position.
Today’s critical levels to watch:
Support: 1.0900, 1.0800, 1.0650, 1.0500
Resistance: 1.1000, 1.1120, 1.1185, 1.1300, 1.1360
GBP/USD
GBP/USD fell and closed near 1.2625 yesterday but there was no continuation of the bearish movement in today’s trading. The pair is maintained in the range 1.2625 – 1.2800 so traders will wait for further reaction. If the pair can bounce up strongly then the consolidation within 1.2625 – 1.2800 will continue. In the long term, the trend of the pair is still bullish so traders will be more inclined to accumulate long positions.
Today’s critical levels to watch:
Support: 1.2625, 1.2200, 1.2100, 1.2000
Resistance: 1.2800, 1.3000
USD/JPY
USD/JPY bounced from 141.00 and rose above the daily SMA 200. The pair has been in a bearish trend so the current increase is a temporary reaction. Traders will wait for a bearish reaction near the resistance point for short-position opportunities. As long as the pair continues to form lower swing highs and lower swing lows, the bearish situation will continue.
Today’s critical levels to watch:
Support: 142.00, 141.00
Resistance: 145.00, 147.00, 150.00
AUD/USD
AUD/USD entered the 0.6700 – 0.6750 area where a bullish reaction is likely to occur. Traders will wait for a bounce reaction from this area and also the trendline. When a bullish candlestick forms, that is the time for traders to enter a long position. However, the bearish correction still has the potential to continue towards the daily SMA 200 so traders should remain careful and plan long positions with this possibility in mind.
Today’s critical levels to watch:
Support: 0.6700, 0.6500, 0.6350, 0.6170, 0.6000
Resistance: 0.6750, 0.6820, 0.7000