USDX (USD Index)
The U.S. dollar index continues to fall without any bullish reaction. Currently, the index has reached 100.30 and will soon reach 100.00. The lower-than-expected inflation rate has been the trigger for the current move. The Fed has no compelling reason to raise interest rates further and sentiment has reversed. Globally, the market is likely to start a bullish trend this year so the dollar index is likely to continue to be under bearish pressure.
A bullish correction is possible after testing the 100.00 mark and traders will wait near the resistance for short positions.
EUR/USD
EUR/USD reached the 1.1120 – 1.1185 area and will now test this area. The increase is expected to continue because the pair has formed a higher swing high point. If the pair makes a bearish correction, that’s an opportunity for traders to enter long positions. Currently, the 1.1000 level will be the nearest support point that traders can use to enter long positions.
Today’s critical levels to watch:
Support: 1.1000, 1.0900, 1.0800
Resistance: 1.1120, 1.1185
GBP/USD
GBP/USD immediately hit 1.3000 without any significant bearish correction. The trend has turned bullish for the medium to long term so the upward movement may continue. The next bullish target is at 1.3250 and traders will be waiting for a bearish correction for opportunities to enter long positions.
Today’s critical levels to watch:
Support: 1.3000, 1.2800, 1.2625, 1.2200
Resistance: 1.3250
USD/JPY
USD/JPY fell below the 139.30 – 141.00 area and there is no indication of a reversal yet. The pair is likely to continue weakening toward the daily SMA 200. A bounce may occur near the daily SMA 200 but it will be a temporary reaction. If the pair continues to weaken below the daily SMA 200 and forms a lower swing low then the bearish trend may continue.
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 jumped sharply above its daily SMA 200 yesterday and today saw a continuation of the upside movement. The trend of the pair has become bullish again and will try to form higher swing highs to confirm the continuation of the bullish movement. Currently, if there is a bearish correction then it is an opportunity for traders to continue adding to long positions.
Today’s critical levels to watch:
Support: 0.6700, 0.6500, 0.6000
Resistance: 0.6750, 0.6820, 0.7000