USDX (USD Index)
The bullish movement of the U.S. dollar index might finally peak as it starts moving lower today. However, the release of CPI data is near and it might produce volatility in the market. The reactions after CPI data will set up sentiment before the end of the month FOMC meeting. Will the index start another bearish correction and resume the bullish movement again nearing the FOMC meeting? Alternatively, will it continue the climb until the end of the month without a major bearish correction?
Nevertheless, traders will continue to use the bearish correction in the index as a chance to add more long positions in the U.S. dollar.
EUR/USD
EUR/USD bearish movement managed to print a new lower swing low on the chart. At the current time, the pair started a bullish correction and will retest the 1.0339 level. Traders will continue to assume that the pair will continue the bearish trend and use bullish correction as chance to add short positions. On the upside, a close above 1.0500 will cancel the current bearish trend.
Today’s critical levels to watch:
Support: 1.0200, 1.0100, 1.0000
Resistance: 1.0339, 1.0650, 1.0800
GBP/USD
GBP/USD bounced from the 1.2100 level but is currently limited inside the 1.2000 – 1.2200 area. The pair might consolidate near the area or start a bullish correction with the previous swing low (1.2351) as a target. When the pair reach the level, traders could wait for bearish reactions to enter short positions. As long as the pair continues printing new lower swing low and lower swing high, it is better to stick with short positions.
Today’s critical levels to watch:
Support: 1.2200
Resistance: 1.2625, 1.2800, 1.3000
USD/JPY
USD/JPY continues the consolidation without strong confirmation outside of the range. The pair will continue to consolidate near the current level and traders will continue to monitor the pair’s reactions for now. Will the pair turn lower and target the daily SMA 200 before resuming a bullish trend? Alternatively, the pair might resume the bullish movement without any bearish correction.
Today’s critical levels to watch:
Support: 155.00, 151.80, 150.00
Resistance: 158.00
AUD/USD
AUD/USD made a bullish close yesterday after a new lower low. The pair is attempting to extend the bullish movement today, but it is stuck near the opening level now. We might see further weakness on the pair and a bearish continuation to print a new lower low. However, if the pair starts moving upward, then 0.6300 and 0.6350 are the resistance levels to watch for bearish reactions.
Today’s critical levels to watch:
Support: 0.6000
Resistance: 0.6250, 0.6350, 0.6500, 0.6700