USDX (USD Index)
U.S dollar index undergoes a bearish correction nearing the ECB rate decision this week and the Fed FOMC meeting next week. Traders will wait near the level around 105.00 for a chance to enter long positions in the U.S dollar when a bullish reaction happens. It is better to stay sideline for now and wait for the reaction after the interest-rate announcement.
EUR/USD
EUR/USD bounced from the parity level and moved upward in a bullish correction. The pair soon will reach the 1.0339 level where traders will wait for a bearish reaction. If the pair form bearish reactions then traders could enter short positions. On the other hand, the further upward movement followed by a higher high will cancel the bearish outlook.
Today’s critical levels to watch:
Support: 1.0000
Resistance: 1.0339, 1.0650, 1.0800, 1.0900
GBP/USD
GBP/USD trading upward and currently moving near the 1.2000 – 1.2200 area. The pair might consolidate near the area and wait for a reaction. If the pair form a bearish reaction then traders could enter short positions. On the other hand, a close above 1.2200 might cancel the bearish outlook and start a new bullish leg.
Today’s critical levels to watch:
Support: 1.1450
Resistance: 1.2000, 1.2100, 1.2200
USD/JPY
USD/JPY follows the USD/JPY path to start a bearish correction. The current bearish movement has no strong momentum but might continue to target the 135.00 level. Traders will wait near the level for a bullish reaction. When there are significant bullish reactions, traders could enter long positions.
Today’s critical levels to watch:
Support: 135.19, 135.00
Resistance:
AUD/USD
AUD/USD building bullish pressure and climbing above 0.6820 with strong momentum. The upward movement might continue and bring the pair up to the target 0.7000 resistance level. The pair has movement room up to the daily SMA 200 or 0.7160. Traders could enter short positions near the resistance level by scaling in slowly between 0.7000 – 0.7160 and placing stop orders above 0.7160.
Today critical levels to watch:
Support: 0.6750, 0.6700
Resistance: 0.6820, 0.7000, 0.7160, 0.7300