USDX (USD Index)
The U.S. dollar index closed below 100.00 which is bearish confirmation. The bearish movement will continue, but a bullish reaction may also occur ahead of the announcement of the Fed’s interest rate. For now, traders will prepare for an increase in the index and opportunities to enter short positions near resistance in the US dollar.
EUR/USD
EUR/USD has formed a swing high point higher and now will try to continue its upward movement towards the 1.1300 – 1.1360 area. Traders who already have long positions can maintain positions with stops below 1.1000. If a bearish correction occurs, traders can use that point as a place to add long positions.
Today’s critical levels to watch:
Support: 1.1185, 1.1120, 1.1000
Resistance: 1.1300, 1.1360
GBP/USD
GBP/USD is very bullish past the 1.3000 mark. The pair will try to continue its upward movement towards the 1.3250 and the 1.3300 – 1.3330 area. Traders will now wait for a bearish reaction and correction towards 1.3000 or 1.2800 for opportunities to enter long positions. In terms of trend, the pair has been in a bullish trend so traders should only enter long positions for the long term.
Today’s critical levels to watch:
Support: 1.3000, 1.2800, 1.2625, 1.2200
Resistance: 1.3250, 1.3300, 1.3330
USD/JPY
USD/JPY dipped and hit a spot near its daily SMA 200 last week. The bullish reaction occurred but it seems only temporary. The pair will try to bounce up with 141.00 as the target for an increase. There is a possibility that a bearish reaction will occur at that point and bring the pair further lower. Traders will watch the pair’s reaction near that point and close long positions if the pair drops drastically.
Today’s critical levels to watch:
Support: 137.70, 133.00
Resistance: 139.30, 140.00, 141.00, 145.00, 147.00
AUD/USD
AUD/USD rose sharply last week and almost made a higher swing high. A bearish correction occurs at the end of the week and the pair possibly will fall towards 0.6820 or the 0.6700 – 0.6750 area. Traders will take advantage of the current bearish correction for opportunities to enter long positions. The trend of the pair has turned bullish so traders should not enter short positions.
Today’s critical levels to watch:
Support: 0.6820, 0.6750, 0.6700
Resistance: 0.7000