USDX (USD Index)
At the end of 2021, the U.S dollar index fell and closed below 96.10. However, the index did not continue the bearish movement yesterday. The index reverse the direction and closed above 96.10 instead. It seems the index will continue its bullish movement and target the 96.70 resistance level and higher. Traders might want to stay out of short positions in the U.S dollar until the index breakout below 94.00 – 94.30 area.
EUR/USD
EUR/USD closed lower yesterday, back inside the 1.1300 – 1.1360 area again. Traders will continue waiting for the breakout of the range now to confirm the next direction. If the pair continues lower then the bearish trend is set to continue with 1.1000 as a bearish target. On the other hand, if the pair could reverse the bearish pressure then a climb toward 1.1500 might happen.
Today critical levels to watch:
Support: 1.1300, 1.1185, 1.1120, 1.1000
Resistance: 1.1360, 1.1500
GBP/USD
GBP/USD bullish correction stopped yesterday as the pair closed lower. The pair is not far from the daily SMA 200 and the 1.3600 resistance level. Traders will continue to observe the pair movement between 1.3450 – 1.3600 for now. As long as there is no close above 1.3600 or the daily SMA 200 then the trend will continue to bearish.
Today Critical level to watch:
Support: 1.3450, 1.3330, 1.3300
Resistance: 1.3600
USD/JPY
USD/JPY touch down at the 115.90 resistance level and formed a higher swing high. The bullish trend of the pair is set to continue as projected. If the pair make a bearish correction then traders will wait near the 114.50 support level for a chance to add more long positions. Short positions are not suggested at least until a lower swing is low printed.
Today critical levels to watch:
Support: 114.50, 113.00, 112.00
Resistance: 115.00, 115.90
AUD/USD
AUD/USD trading lower before it could reach the 0.7300 – 0.7330 resistance level. The pair might retest the broken 0.7160 level soon. Traders will monitor the pair reaction from the 0.7160 support level. If the pair could bounce from the level with strong bullish momentum then the bullish trend is set to continue.
Today critical levels to watch:
Support: 0.7160
Resistance: 0.7300, 0.7330, 0.7450