USDX (USD Index)
U.S dollar index printed a new lower low which confirms a bearish continuation. However, there is no bearish continuation yet as the index is trading inside the bearish candlestick range. This week CPI data might become the catalyst for movement. If CPI data show a lower-than-expected number then we will see a bearish continuation in the index. On the other hand, a hotter-than-expected inflation number could push the index up to target the daily SMA 200 again.
EUR/USD
EUR/USD trading upward to target the 1.0800 resistance level. However, the pair seems losing upward pressure and trading back near the opening level. If the pair start moving lower again then traders will wait near the 1.0650 level for bullish reactions. When a bullish reaction happens then traders could enter long positions.
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 currently consolidating near the daily SMA 200 also inside the 1.2000 – 1.2200 range. No breakout from the range which means the consolidation might continue. Traders will wait for a close outside of the range to confirm the next direction. A new higher high or a new lower low will become the confirmation of the next direction of the pair.
Today’s critical levels to watch:
Support: 1.2000, 1.1450
Resistance: 1.2100, 1.2200
USD/JPY
USD/JPY trend is bearish and the pair is expected to move lower to target a new lower low. Traders will continue to treat each bullish correction movement as a chance to enter short positions near resistance levels. On the lower side, the green box area might become the support level to watch. A breakout and close below the area could become the confirmation of a bearish continuation.
Today’s critical levels to watch:
Support: 139.30, 135.19, 135.00
Resistance: 140.00, 145.00, 150.00
AUD/USD
AUD/USD trading above the daily SMA 200. There is bearish movement but no retest on the daily SMA 200 yet. If the pair make a bearish movement then traders will wait near the daily SMA 200 for a chance to enter long positions. On the upside, 0.7000 will become the bullish target to watch. A new lower low below the daily SMA 200 will cancel the bullish outlook and bring the pair back into a bearish trend.
Today’s critical levels to watch:
Support: 0.6750, 0.6700, 0.6500, 0.6000
Resistance: 0.6820, 0.7000