USDX (USD Index)
The U.S. dollar index continues trading sideways outside of the bearish channel. If the index continues its upward movement then it will test the daily SMA 200. Traders will wait near the averages for bearish reactions and a chance to enter short positions in the U.S. dollar. As inflation numbers show higher than expected numbers, traders will prepare for the continuation of upward movement for now.
EUR/USD
EUR/USD is trapped inside the 1.0900 – 1.1000 area which means the situation is sideway. Not much to expect for now aside from waiting for the pair to make a breakout from the consolidation range. If the pair continue the bearish correction then it will target the daily SMA 200. Traders could prepare to enter long positions near the support level when there are bullish reactions.
Today’s critical levels to watch:
Support: 1.0900, 1.0800, 1.0650, 1.0500
Resistance: 1.1000, 1.1120, 1.1185, 1.1300, 1.1360
GBP/USD
GBP/USD moving upward and soon will reach the 1.2800 resistance level. The pair is ranging inside the 1.2625 – 1.2800 area for now. Traders will wait for a breakout from the range to confirm the next direction of the pair. On the lower side, a bearish correction might happen to test the daily SMA 200. Traders will continue to avoid shorting the pair for the long term as the overall trend is bullish.
Today’s critical levels to watch:
Support: 1.2625, 1.2200, 1.2100, 1.2000
Resistance: 1.2800, 1.3000
USD/JPY
USD/JPY showed a bearish reaction yesterday and there is a bearish continuation in today’s trading session. The pair might attempt to break out and close below the daily SMA 200. When a bearish close below the daily SMA 200 happens then the pair will target a new lower low next. Traders will use the current area 145.00 – 147.00 to enter short positions with a stop above the area.
Today’s critical levels to watch:
Support: 142.00, 141.00
Resistance: 145.00, 147.00, 150.00
AUD/USD
AUD/USD returned inside the 0.6700 – 0.6750 area again after several days close below it. The pair might continue consolidating near the area while waiting for further confirmation. We think the pair will continue the bullish trend with or without a test on the daily SMA 200. Traders could continue accumulating long positions near the area 0.6700 – 0.6750 toward the daily SMA 200.
Today’s critical levels to watch:
Support: 0.6700, 0.6500, 0.6350, 0.6170, 0.6000
Resistance: 0.6750, 0.6820, 0.7000