USDX (USD Index)
U.S dollar index crawling upside and will target the next resistance level. The current bullish pressure is fueled by the expectation that inflation numbers will continue to increase. Traders could only wait for a bearish correction in the index toward the support level. When the index hit a support level and produces bullish reaction then traders could enter long positions.
EUR/USD
EUR/USD hit the parity level today and it might break out below the support level. The situation in Europe is surely a mess as energy crises worsen. Traders might want to stay sideline and wait for a strong bullish reaction near the support level for a chance to enter long positions. EUR/USD might need a few weeks/months of consolidation near the parity level before a bounce could happen.
Today’s critical levels to watch:
Support: 1.0000
Resistance: 1.0339, 1.0650, 1.0800, 1.0900
GBP/USD
GBP/USD continues trading lower below the 1.2000 support level. The pair’s bearish trend might target the 1.1450 support level next. Without a close above 1.2000, it is better to avoid taking long positions. Traders could use the 1.2000 – 1.2200 area as a place to look for short positions.
Today’s critical levels to watch:
Support: 1.1450
Resistance: 1.2000, 1.2100, 1.2200
USD/JPY
USD/JPY printed a higher high again yesterday to extend the bullish trend. There is a bearish movement today but limited inside yesterday’s range. A bearish correction might happen anytime but traders might want to avoid shorting as the trend is bullish. It is better to wait near the support level for a chance to enter long positions.
Today’s critical levels to watch:
Support: 135.19, 135.00
Resistance:
AUD/USD
AUD/USD is mostly bearish with a new lower low on the daily chart. The pair fell and close below 0.6750 yesterday. There is a bearish attempt today but the pair has returned near the 0.6750 and might stick near it until the closing of the day. Traders who have short positions will continue to hold the position with a stop above 0.6900.
Today critical levels to watch:
Support: 0.6750, 0.6700
Resistance: 0.6820, 0.7000, 0.7160, 0.7300