USDX (USD Index)
The weakening of the U.S. dollar index looks to continue and is now near the previous swing low point. If the index can continue the decline then the movement towards 100.00 will continue. Traders will now lean towards bearish sentiment but remain cautious ahead of the Fed’s announcement this month. In the long term, the trend will be bearish but a short-term reversal may occur.
EUR/USD
EUR/USD continues its strength this week and is approaching the 1.1000 mark. The pair will test this point and wait for further reactions. If there is a bearish rejection then correction can occur towards the 1.0900 level. Traders will continue to maintain bullish sentiment until a lower swing low is formed in the pair. A close above 1.1000 would confirm a continuation of the bullish run.
Today’s critical levels to watch:
Support: 1.0800, 1.0650, 1.0339
Resistance: 1.0900, 1.1000
GBP/USD
GBP/USD has made a close above the 1.2800 level and now looks to be holding above it after losing ground in early trading. The bullish movement in the pair has 1.3000 as an upward target. Traders who already have long positions will maintain these positions while adding positions when a bearish correction occurs.
Today’s critical levels to watch:
Support: 1.2625, 1.2200, 1.2100
Resistance: 1.2800
USD/JPY
USD/JPY has made a bearish correction from 145.00 and is now approaching 141.00. The weakening of the pair will test the 139.30 – 141.00 area and traders will wait for a bullish reaction. If the pair can bounce with strong bullish momentum then traders can enter long positions. As long as the pair forms higher swing highs and higher swing lows, the movement of the pair will continue to be bullish.
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 made a bullish close near the daily SMA 200 at the end of last week. However, this week did not see any continuation of the pair’s upward movement. Conversely, the pair experienced a bearish rejection. For now, the pair’s movement is still limited within Friday’s range of movement. It can be said that the situation is sideway and traders will wait for further reactions near the daily SMA 200.
Today’s critical levels to watch:
Support: 0.6700, 0.6500, 0.6000
Resistance: 0.6750, 0.6820, 0.7000