USDX (USD Index)
The U.S. dollar index managed to bounce up and is now forming a triangle pattern consolidation area. The movement of the index is bearish for the long term, but there is a possibility that the index will start to move sideways. The key to the index’s next move will be determined by the Fed’s decision. If it turns out that there is no increase in interest rates by the end of this year then the index can immediately continue its weakening. However, if the sentiment of more rate-hike continues to be played by the Fed, then the sideway situation will continue.
EUR/USD
EUR/USD is holding near the 1.0900 mark for now and will try to continue its bullish run. The pair is still in a bearish correction phase and there is a possibility of a decline towards 1.0800. Traders will continue to take advantage of every drop that occurs as an opportunity to enter long positions. When the pair manages to rise above 1.1000 and form a higher swing high then the bullish trend can continue.
Today’s critical levels to watch:
Support: 1.0800, 1.0650, 1.0339
Resistance: 1.0900, 1.1000
GBP/USD
GBP/USD bounced off the point of 1.2625 and is likely to end the bearish correction. If the pair immediately moves up then the 1.2800 and 1.3000 levels are the next target for the increase. A further bearish correction could bring the pair down to test its daily SMA 200. Traders can take advantage of the current situation to continue accumulating long positions.
Today’s critical levels to watch:
Support: 1.2625, 1.2200, 1.2100
Resistance: 1.2800
USD/JPY
USD/JPY has reached 145.00 and has the opportunity to continue its upward movement towards 147.00. The trend of the pair is still bullish and there is no strong reason for a bearish reversal yet. The next bullish target is at 147.00. If a bearish correction occurs then 141.00 will be a support level that can be watched for a bullish reaction.
Today’s critical levels to watch:
Support: 141.00, 140.00, 139.30, 137.70, 133.00
Resistance: 145.00, 147.00
AUD/USD
AUD/USD failed to defend the daily SMA 200 last week. The pair closed below that point and is now back in a neutral situation. If the pair doesn’t move up soon and close above the daily SMA 200 then the situation could develop into a bearish again. For now, traders will be watching the pair’s further reaction near the daily SMA 200.
Today’s critical levels to watch:
Support: 0.6500, 0.6000
Resistance: 0.6700, 0.6750, 0.6820, 0.7000