USDX (USD Index)
U.S dollar index was under bearish pressure today after the inflation data release. However, the index recovered and traded back near its opening level. Despite the situation, the U.S. stock market is rallying as traders expect the Fed to soften their interest-rate plan and announce more rate cuts for the year. Technically, not much has changed yet for the index, with no new lower swing low which means the trend is bullish and a bearish pullback is a chance to add more long positions.
EUR/USD
EUR/USD moves upward and gets rejected from the 1.0339 level. The pair is slightly lower than the opening level and might indicate a bearish continuation for tomorrow’s trading session. The latest inflation data is positive for the U.S. dollar counterpart but it seems the bullish movement in EUR/USD is only short-lived. If the pair cannot continue the bullish movement and fall with strong bearish momentum then traders will expect a new lower swing low.
Today’s critical levels to watch:
Support: 1.0200, 1.0100, 1.0000
Resistance: 1.0339, 1.0650, 1.0800
GBP/USD
GBP/USD could not maintain bullish pressure after the bounce from the 1.2200 level. The pair trade back near the opening level and might settle the days near it. If the pair turns lower again then it will consolidate between 1.2000 – 1.2200 and traders will turn back to the original plan. If the pair could stabilize inside the 1.2000 – 1.2200 area then there is a chance of a bullish bounce to target the daily SMA 200. However, if the pair continues the bearish movement with strong momentum and breaks below 1.2000 then it is better to stay sideline.
Today’s critical levels to watch:
Support: 1.2200
Resistance: 1.2625, 1.2800, 1.3000
USD/JPY
USD/JPY pushed lower with moderate bearish momentum today. It seems the bear seizing control but no lower low is printed on the chart. The pair movement is contained within the consolidation range and it might continue moving sideways. As mentioned before, as long as there is no new higher swing high or lower swing low, traders will continue waiting.
Today’s critical levels to watch:
Support: 155.00, 151.80, 150.00
Resistance: 158.00
AUD/USD
AUD/USD might be the only pair that moves higher and maintains its bullish pressure against the U.S. dollar. It is understandable as the pair also experience more bearish movement compared to other major pairs. On the upside, AUD/USD will target the 0.6357 level. A close above the resistance level might open a bullish path to target the daily SMA 200 or higher.
Today’s critical levels to watch:
Support: 0.6000
Resistance: 0.6250, 0.6350, 0.6500, 0.6700