USDX (USD Index)
U.S CPI data release will become the major event to watch today. A lower number means inflation might have under control and will push the Fed to end its rate-hike policy faster. At the current time, the U.S. dollar index has printed a lower low but no bearish continuation yet. If the index continues moving lower then it might target the 100.00 – 100.30 area. On the other hand, if the index moves upward then we might see another retest on the daily SMA 200.
EUR/USD
EUR/USD maintains its position near the top without major reactions. The pair might extend the bullish movement to target the 1.0800 resistance level. On the upside, 1.0900 and 1.1000 will become the next target to watch. On the other hand, if the pair start moving lower again 1.0650 will become the support level to watch for a bounce. We think traders could stick with the bullish scenario as long as the pair continue 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 continues consolidating near the daily SMA 200 and inside the 1.2000 – 1.2200 range. Without a breakout and close outside of the 1.2000 – 1.2200 range, there is no reason for traders to enter major positions yet. We think the bull has the upper hand, but it is better to wait until the actual close outside of the range happens. Today U.S CPI data might provide some clues and reactions from the daily SMA 200.
Today’s critical levels to watch:
Support: 1.2000, 1.1450
Resistance: 1.2100, 1.2200
USD/JPY
USD/JPY fall with strong bearish momentum today. The bearish movement might become an indication of bearish continuation as it moves below the green box area. Traders who have short positions will continue to hold the positions and monitor the pair’s movement inside the bearish channel. If the pair make a bullish reversal and close above the top of the channel then traders will exit short positions and enter at a higher level.
Today’s critical levels to watch:
Support: 139.30, 135.19, 135.00
Resistance: 140.00, 145.00, 150.00
AUD/USD
AUD/USD hovering above the daily SMA 200 but no bullish continuation toward the daily 0.7000 level yet. The pair might continue trading sideway at the current level. Traders could enter long positions near the daily SMA 200 when a bearish correction happen. As long as there is no lower low printed on the chart, traders could continue to assume that the trend will continue bullish.
Today’s critical levels to watch:
Support: 0.6750, 0.6700, 0.6500, 0.6000
Resistance: 0.6820, 0.7000