USDX (USD Index)

U.S dollar index continues putting bullish pressure and printed bullish close. The index closed above 92.60 resistance level yesterday. However, the bullish pressure does not continue today as the index fall with strong bearish pressure. Despite the bearish pressure, traders might want to be careful shorting the U.S dollar pair. The index currently trading inside the 92.00 – 93.00 area and might consolidate inside it.

As long as there is no major bearish close below 92.00, it is better to avoid short positions.

EUR/USD

EUR/USD closed below the 1.1820 support level which means there is a chance for bearish continuation toward 1.1710. However, the pair stage a bullish reversal today and trading upward with strong bullish momentum. If the pair could continue to maintain the bullish pressure then traders will expect the pair to start an upward movement to target daily SMA 200.

Today critical levels to watch:

Support: 1.1820, 1.1710

Resistance: 1.2000, 1.2070

GBP/USD

GBP/USD looks made a neutral close yesterday with a similar upper-lower candlestick wick. The pair was under pressure but slowly recover toward its opening level. There is no conclusion yet on where the pair will move next. Traders will continue to observe the pair’s closing level.

If the pair build more bearish pressure then traders will expect it to target the daily SMA 200. On the other hand, if the pair could recover and close above 1.3835 and the daily SMA 200 then we will expect bullish continuation to test 1.4000.

Today Critical level to watch:

Support: 1.3835, 1.3600

Resistance: 1.4000, 1.4325

USD/JPY

USD/JPY confirms the breakout below trendline with strong bearish momentum today. There is no pullback and the pair continues falling below 110.00. It seems a major bearish correction is set to happen toward 108.00 with an extension possibility toward daily SMA 200.

Traders will wait for the bearish pressure to recede and form a major bullish reaction before deciding to enter long positions.

Today critical levels to watch:

Support: 109.00, 108.00

Resistance: 110.00, 111.00, 112.00

AUD/USD

AUD/USD might have lost the chance for bullish reversal as the pair continue printing lower low on the daily chart. Without any change in the sentiment, the pair might be able to reach the 0.7300 – 0.7330 area. It is better to avoid long positions for now until a major bullish reaction is formed.

Today critical levels to watch:

Support: 0.7330, 0.7300

Resistance: 0.7450, 0.7500, 0.7550