USDX (USD Index)
U.S dollar index losing ground and printed a new lower low today. The bearish trend is set to continue and traders better avoid long positions in the U.S. dollar. If the index could move upward and close above the daily SMA 200 then the trend will turn bullish again. At the current time, traders will treat each bullish movement as a correction movement. Each correction movement is a chance for traders to enter short positions near the resistance level.
EUR/USD
EUR/USD breakout above the 1.0650 resistance level and print a new higher high. The pair is set to continue the bullish movement toward 1.0800, 1.0900, and 1.1000. Traders will use each bearish movement as a chance to enter long positions. It is best to avoid short positions for now at least until a new lower low is printed on the daily chart.
Today’s critical levels to watch:
Support: 1.0650, 1.0339, 1.0000, 0.9500
Resistance: 1.0800, 1.0900, 1.1000
GBP/USD
GBP/USD trading upward above the daily SMA 200 but limited inside the 1.2000 – 1.2200 area. The pair needs to break out and close outside of the range to confirm the next direction. If the pair get rejected and close below the daily SMA 200 there is a chance of a bearish reversal. However, as long as the pair stays inside the range, traders could continue to apply the range trading strategy.
Today’s critical levels to watch:
Support: 1.1450
Resistance: 1.2000, 1.2100, 1.2200
USD/JPY
USD/JPY got rejected near the top of the bearish channel which confirms a bearish continuation. Traders who enter short positions near the top of the channel could move stop level above the previous day’s high. The pair currently trading near the green box area and a breakout below it will confirm a bearish continuation. On the upside, as long as the pair stays below the daily SMA 200 and print a new lower low also lower high then the trend will continue bearish.
Today’s critical levels to watch:
Support: 139.30, 135.19, 135.00
Resistance: 140.00, 145.00, 150.00
AUD/USD
AUD/USD breakout above the daily SMA 200 and continue the bullish movement. The pair is set to target the 0.7000 resistance level where a bearish reaction might happen. If the pair start a bearish correction then traders will wait near the 0.6820 and daily SMA 200 for a chance to enter long positions. On the lower side, without any lower low printed then it is better to stick with long positions.
Today’s critical levels to watch:
Support: 0.6750, 0.6700, 0.6500, 0.6000
Resistance: 0.6820, 0.7000