USDX (USD Index)
U.S dollar index fell with moderate momentum yesterday which might start a new bearish leg. If the index continues the bearish movement and prints a new lower swing low then the trend will turn bearish. However, if the index finds support and bounces from it with strong bullish momentum then the bullish trend has not ended yet.
EUR/USD
EUR/USD made a bullish recovery but no higher swing high printed on the chart yet. The pair might attempt to continue the upward movement to test the nearest resistance level. If the pair could close above 1.05000 then there is a chance of bullish reversal. On the other hand, if the pair turns lower and prints a new lower swing low then there is no change to the bearish trend.
Today’s critical levels to watch:
Support: 1.0339
Resistance: 1.0650, 1.0800
GBP/USD
GBP/USD made a similar movement to the EUR/USD and attempted to return near the 1.2625 level. As mentioned before, the 1.2625 level is a resistance level now. Even though the pair could close above the level, it needs to move above the daily SMA 200 to confirm a long-term bullish reversal. If the pair get rejected and form major bearish reactions then the bearish trend could continue.
Today’s critical levels to watch:
Support: 1.2200
Resistance: 1.2625, 1.2800, 1.3000
USD/JPY
USD/JPY sideways movement continued as the pair made a bullish close yesterday. No breakout from the range yet which means the pair could just continue the sideways movement. Traders will wait for a movement with strong momentum away from the range to confirm the next direction. If the pair breaks lower then the daily SMA 200 is the support level. On the upside, 162.53 is the bullish target to watch.
Today’s critical levels to watch:
Support: 155.00, 151.80, 150.00
Resistance: 158.00
AUD/USD
AUD/USD made a bullish attempt yesterday but closed near the previous week’s high. No confirmation yet that the pair will continue moving upward. However, if the pair could climb and close above 0.6350 then there is a chance of a long-term bullish reversal. On the other hand, as long as the pair continues printing new lower-swing lows and lower-swing highs then the bearish trend will continue.
Today’s critical levels to watch:
Support: 0.6250, 0.6000
Resistance: 0.6350, 0.6500, 0.6700