USDX (USD Index)
U.S dollar index’s bullish movement has not stopped yet nearing the release of inflation data and the FOMC meeting. Traders are expecting higher inflation numbers and the possibility that the Fed will stop cutting interest rates. At the current time, it is better to avoid shorting the index until results are announced and the market reacts bearishly. When the index starts a bearish correction, traders will monitor the latest swing low level around 108.00 for bounce reactions. As long as the index continues printing new higher swing highs and higher swing lows, traders will maintain a bullish outlook.
EUR/USD
EUR/USD continues its bearish movement today with a new lower swing low. The pair’s bearish outlook has not changed yet. On the upside, the pair needs to climb above 1.0500 to reverse the current bearish outlook. As long as the pair continues printing new lower-swing lows and lower-swing highs, it is better to enter short positions when bullish pullbacks occur.
Today’s critical levels to watch:
Support: 1.0200, 1.0100, 1.0000
Resistance: 1.0339, 1.0650, 1.0800
GBP/USD
GBP/USD has reached the 1.2200 and 1.2100 levels today which means it completed the bearish target. The pair might extend the bearish movement to test the 1.2000 level. At the current time, traders will wait for a bullish bounce toward the resistance level to enter short positions when there are bearish reactions. On the upside, a close above 1.2625 or better daily SMA 200 might reverse the current bearish trend.
Today’s critical levels to watch:
Support: 1.2200
Resistance: 1.2625, 1.2800, 1.3000
USD/JPY
USD/JPY is mostly sideways without a new higher high or lower low. The pair might continue the consolidation near the current level and wait for a breakout to happen. When the pair breaks out and closes outside of the current consolidation range, traders will get confirmation on where the pair will move next. Under the current situation, it is better to stay sideline.
Today’s critical levels to watch:
Support: 155.00, 151.80, 150.00
Resistance: 158.00
AUD/USD
AUD/USD was also under bearish pressure, and today, the bearish trend continued. However, the pair regained the opening level and is currently trading above it. If the pair could continue gaining and erase all of the previous day’s losses, then there is a chance of a bullish correction to target 0.6250 and 0.6357. Traders will continue maintaining a bearish view on the pair until a new higher swing high and higher swing low are printed on the chart.
Today’s critical levels to watch:
Support: 0.6000
Resistance: 0.6250, 0.6350, 0.6500, 0.6700