USDX (USD Index)
U.S dollar index traded upward after the release of U.S ADP data which is better than expected. Because of the strong job data, the market seems to be expecting further tightening and driving the U.S. dollar index up. Under the current situation, the index might continue upward to target the daily SMA 200. If the index could close above the daily SMA 200 then there is a chance of a bullish trend reversal.
EUR/USD
EUR/USD starts a new bearish leg from the 1.0650 resistance level. The pair might continue moving lower to target the daily SMA 200 and the 1.0339 level. Under the current situation, it is better to let the pair to continue moving lower and reach the level. If the pair could maintain the position and form major bullish reactions then traders could enter long positions.
Today’s critical levels to watch:
Support: 1.0339, 1.0000, 0.9500
Resistance: 1.0650
GBP/USD
GBP/USD managed to close the day inside the 1.2000 – 1.2200 area. However, the pair come under bearish pressure again today and fall below the 1.2000 level. If the pair continues the downward movement then it will target the 1.1450 support level next. On the other hand, if the pair manages to reverse the current bearish pressure and close above the daily SMA 200 then we might see a bullish continuation.
Today’s critical levels to watch:
Support: 1.1450
Resistance: 1.2000, 1.2100, 1.2200
USD/JPY
USD/JPY moving upward for the third day and the bullish momentum continue to add up. No bearish sign yet which means the pair soon will reach the top of the bearish channel or daily SMA 200. If the pair manage to reach the resistance levels then traders will wait for bearish reactions. Strong bearish reactions will become a confirmation for traders to enter short positions.
Today’s critical levels to watch:
Support: 139.30, 135.19, 135.00
Resistance: 140.00, 145.00, 150.00
AUD/USD
AUD/USD managed to print a strong bullish close yesterday but no close above the daily SMA 200. It means the trend has not changed yet from bearish to bullish. Today, the pair experienced bearish pressure and fall with strong bearish momentum. Despite the situation, the pair continue trading inside the 0.6700 – 0.6820 range which means the consolidation might continue. Traders better await for the pair to print close outside of the range before deciding on the next direction.
Today’s critical levels to watch:
Support: 0.6750, 0.6700, 0.6500, 0.6000
Resistance: 0.6820, 0.7000