USDX (USD Index)
U.S dollar index’s bearish trend is set to continue toward the 100.00 support level. There is no change to the outlook as inflation numbers continue moving down. Also, the prospect of recession in the U.S. could deliver further weakness in the U.S. dollar. Under the current situation, it is better to sell on strength near the resistance level. We expect the index to range between 100.00 – 105.00 in the first half of this year.
EUR/USD
EUR/USD attempting to resume the bullish movement today to target the 1.1000 resistance level. However, the pair seems limited between 1.0800 – 1.0900. We might see further consolidation inside the area with a bullish bias. If the pair manages to breakout lower then traders will wait near the 1.0650 support level or 1.0800 for a chance to enter 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 moving upward and is set to print a new higher high on the daily chart. The pair might continue upward to target the 1.2625 resistance level next. If the pair start a bearish correction then traders could wait near the 1.2000 – 1.2200 area and the daily SMA 200 for a chance to enter long positions.
Today’s critical levels to watch:
Support: 1.2000, 1.1450
Resistance: 1.2100, 1.2200
USD/JPY
USD/JPY started a bullish correction toward the top of the bearish channel. It could be a chance for traders to enter short positions on bearish reactions. We think the bearish trend will continue and traders better maintain short positions for now as long as the pair prints a new lower low and lower high.
Today’s critical levels to watch:
Support: 125.00
Resistance: 130.00
AUD/USD
AUD/USD building another bullish pressure as the pair retesting the 0.7000 level again. If a bullish breakout happens then the pair will continue toward the 0.7160 resistance level. On the lower side, the daily SMA 200 will become a major support level to watch when a bearish correction happens. A close above the 0.7160 resistance level will confirm a long-term bullish reversal.
Today’s critical levels to watch:
Support: 0.6750, 0.6700, 0.6500, 0.6000
Resistance: 0.6820, 0.7000