USDX (USD Index)
U.S dollar index is expected to continue the bearish movement to target the 100.00 support level. However, the index shows a bullish reaction today which might start a new bullish correction. If a bullish correction happens then it is a chance for traders to enter short positions in the U.S. dollar when the index hits the resistance level. Without any higher high and higher low, traders better avoid entering long positions in the U.S. dollar.
EUR/USD
EUR/USD managed to close the day above the 1.0900 resistance level. However, the pair is back under bearish pressure today and might continue downward to test 1.0800 and 1.0650. Traders will observe the pair movement between 1.0800 – 1.0900. If the pair reach 1.0800 or 1.0650 and produce a bullish reaction then traders could 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 was slightly higher as the bearish correction toward 1.2000 – 1.2200 was canceled. The pair will attempt to build more bullish pressure to print a new higher high. If the pair could extend the bullish movement then 1.2625 and 1.2800 are the levels to watch as targets. On the lower side, if the pair could reach the 1.2000 – 1.2200 area and produce a bullish reaction then traders could enter long positions.
Today’s critical levels to watch:
Support: 1.2000, 1.1450
Resistance: 1.2100, 1.2200
USD/JPY
USD/JPY is in a bearish channel and each bullish movement toward the top of the channel is a chance for traders to enter short positions. Without a breakout and close above the top of the channel, traders better stick with short positions. If the pair could close above the channel then we might see a bullish correction toward the daily SMA 200.
Today’s critical levels to watch:
Support: 125.00
Resistance: 130.00
AUD/USD
AUD/USD extended the bullish movement and almost reach the 0.7160 resistance level. As mentioned in the previous analysis, the pair needs to close above 0.7160 to turn the long-term trend into a bullish one. If the pair start moving lower then traders will wait near the 0.7000 or the daily SMA 200 for a chance to enter long positions when a bullish reaction happens.
Today’s critical levels to watch:
Support: 0.6750, 0.6700, 0.6500, 0.6000
Resistance: 0.6820, 0.7000