USDX (USD Index)
The overall movement of the U.S. dollar index is sideways and there were bullish reactions yesterday. Today, there is no bullish continuation as the index is trading lower. Will the index continue the upward movement to target the daily SMA 200? Alternatively, will it continue lower and print a new lower low to resume the bearish trend? At the current time, traders better await either test on the daily SMA 200 or the new lower low to confirm the next direction.
EUR/USD
EUR/USD made a strong bearish close yesterday which might confirm a bearish correction toward the daily SMA 200 and 1.0339. However, the pair currently trading upward and is set to retest the 1.0650 level. If the pair could close above the level then we might see an upward continuation. However, if the pair start moving lower again then traders could wait near the 1.0339 and the daily SMA 200 for a chance to enter long positions.
Today’s critical levels to watch:
Support: 1.0339, 1.0000, 0.9500
Resistance: 1.0650
GBP/USD
GBP/USD closed below the 1.2000 support level but there is no bearish continuation in today’s trading session. The pair currently trading upward, back inside the 1.2000 – 1.2200 area. It might consolidate and wait for a breakout and close outside of the area. If the pair continues moving lower then 1.1450 is the bearish target to watch. On the other hand, if the pair could close above 1.2200 then the bearish scenario will be canceled.
Today’s critical levels to watch:
Support: 1.1450
Resistance: 1.2000, 1.2100, 1.2200
USD/JPY
USD/JPY is in a bearish trend but a bullish correction might happen now. The pair is trading near the green area where price flips happened in the past. If the pair could continue moving upward then it will test the top of the bearish channel and daily SMA 200. Traders will continue to maintain a bearish outlook and prepare for short positions near the resistance level when there are bearish reactions.
Today’s critical levels to watch:
Support: 139.30, 135.19, 135.00
Resistance: 140.00, 145.00, 150.00
AUD/USD
AUD/USD moving upward with strong bullish momentum but is limited below the daily SMA 200. As long as the pair stays below the daily SMA 200, there is no reason for traders to turn bullish yet. If the pair get rejected and form a major bearish pattern then traders could enter short positions targeting a new lower low. On the other hand, if the pair make a close above the daily SMA 200 then traders will prepare for a possible trend reversal.
Today’s critical levels to watch:
Support: 0.6750, 0.6700, 0.6500, 0.6000
Resistance: 0.6820, 0.7000