USDX (USD Index)
U.S dollar index printed a new lower low which means the bearish trend is set to continue. There is no bearish continuation in today’s trading session as the index is trading inside the previous day’s range. If the index starts moving upward again then it is a chance for traders to enter short positions at a higher level. As long as the index stays below the daily SMA 200, there is no reason for traders to turn bullish on the U.S. dollar.
EUR/USD
EUR/USD is mostly higher and maintain the position near the high after the previous day’s higher high. The pair might extend the gain toward the 1.0800, 1.0900, and 1.1000 resistance levels. If the pair start moving lower then traders will wait near the 1.0650 level for a chance to enter long positions. It is better to avoid short positions as the pair has turned bullish and keeps printing a new higher high and higher low.
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 made a bullish close above the daily SMA 200 but maintain the position inside the 1.2000 – 1.2200 area. There is no breakout from the range yet which means the consolidation will continue. Traders could use the chance to apply a range trading strategy with a bullish bias. We still think the pair could continue the bullish movement but a new lower low will cancel the bullish outlook.
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 now, especially after the bearish rejection from the top of the channel. However, the pair maintain the position near the green box area. A consolidation might happen near the area and traders will monitor the reaction. If the pair continue the bearish movement then traders will expect the pair to target a new lower low.
Today’s critical levels to watch:
Support: 139.30, 135.19, 135.00
Resistance: 140.00, 145.00, 150.00
AUD/USD
AUD/USD closed above the daily SMA 200 and print a new higher high. The pair back into a bullish trend but it needs to breakout and close above the 0.7000 level to confirm further upside. At the current time, the pair might start trading lower to retest the daily SMA 200. If the pair closes below the averages and print a new lower low then traders will prepare for a new bearish leg.
Today’s critical levels to watch:
Support: 0.6750, 0.6700, 0.6500, 0.6000
Resistance: 0.6820, 0.7000