USDX (USD Index)
The U.S. dollar index continues to weaken and has now formed a lower swing low. This bearish movement has a target of 100.00. Even though it is bearish, the current movement happened ahead of FOMC Fed’s interest rate decision so the situation can still change. Traders who already have short positions in the U.S. dollar will retain that position for the time being. If there is an increase to the resistance point then it is an opportunity for traders to enter short positions.
EUR/USD
EUR/USD is rising and testing the 1.1000 points today. The pair will try to make a close above that point to confirm the continuation of the bullish trend. Traders will now observe the reaction at the resistance point while waiting for a bearish correction to occur for opportunities to enter long positions in the pair. Unless the Fed actually raises interest rates and becomes more hawkish, the situation could change again.
Today’s critical levels to watch:
Support: 1.0800, 1.0650, 1.0339
Resistance: 1.0900, 1.1000
GBP/USD
GBP/USD rose and made a higher high continuing its bullish run towards 1.3000. The pair is moving as expected, continuing its bullish trend and there is no indication of weakness yet. Traders will continue to use bullish strategies, buying when there is a bearish correction to the support point until a lower swing high or lower swing low is formed.
Today’s critical levels to watch:
Support: 1.2625, 1.2200, 1.2100
Resistance: 1.2800
USD/JPY
USD/JPY continued its decline and entered the 139.30 – 141.00 area. The pair hasn’t shown a bullish reaction yet so further decline is still possible. Traders will now observe the reaction of the pair in that area. If the pair continues to weaken, then the daily SMA 200 is a support point to watch. Long positions can be considered when the bearish momentum wears off and a bounce reaction occurs.
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 continues to stick near its daily SMA 200 and is showing no indication of a continuation of the bullish run yet. The pair will consolidate near that point and traders will be waiting for further reactions. In terms of trend, when the pair can rise and make a close above the daily SMA 200 then the movement can become more bullish.
Today’s critical levels to watch:
Support: 0.6700, 0.6500, 0.6000
Resistance: 0.6750, 0.6820, 0.7000