USDX (USD Index)

The bearish pressure on the U.S. dollar index continues to mount after the release of U.S. CPI data yesterday. There is a bearish continuation today but the momentum is much weaker compared to yesterday’s movement. At the current time, the index might consolidate near the current level and close the week. Nevertheless, the overall trend is bearish now with 100.00 – 100.30 as a bearish target. Traders will maintain the bearish position until the index reach the 100.00 – 100.30 area.

EUR/USD

EUR/USD closed above the 1.0800 resistance level and there is a bearish attempt today. Despite the bearish attempt, the pair manage to maintain its position above the level. If the pair continues moving upward then it will target the 1.0900 and 1.1000 resistance levels. On the other hand, if a bearish correction happens then 1.0650 is the level to watch for 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 closed near the 1.2200 resistance level but no major bullish close above the level yet. The pair might continue to stick near the level which means no breakout from the 1.2000 – 1.2200 area yet. If the pair get rejected and start moving lower again then the consolidation between 1.2000 – 1.2200 will continue. On the lower side, as long as there is no lower low printed on the chart then the odds are in favor of a bullish continuation.

Today’s critical levels to watch:

Support: 1.2000, 1.1450

Resistance: 1.2100, 1.2200

USD/JPY

USD/JPY resumed the bearish movement inside the bearish channel which is not out of expectation. The pair will continue moving bearishly and traders will wait for a bullish correction to enter short positions. Traders who enter short positions when the pair broke below the daily SMA 200 will continue to hold the positions until a higher high or higher low is printed on the chart.

Today’s critical levels to watch:

Support: 139.30, 135.19, 135.00

Resistance: 140.00, 145.00, 150.00

AUD/USD

AUD/USD reached the 0.7000 resistance level yesterday. The pair show a bearish reaction from the resistance level and might start a bearish correction toward the daily SMA 200. Traders could wait near the averages for a chance to enter long positions when the pair form bullish reactions. On the upside, when the pair make a close above 0.7160 then the long-term trend will switch to bullish.

Today’s critical levels to watch:

Support: 0.6750, 0.6700, 0.6500, 0.6000

Resistance: 0.6820, 0.7000