USDX (USD Index)
The U.S. dollar index is slowly moving up from the point of 100.00 and will probably move sideways until the announcement of the Fed’s interest rate next week. However, in the long term, the trend direction of the dollar index is bearish due to the continuing decline in the inflation rate. If the Fed turns around and starts cutting interest rates then the situation will become even more bearish for the U.S. dollar index.
EUR/USD
EUR/USD weakened and reached 1.1185 yesterday. The pair is likely to weaken ahead of the announcement of the Fed’s interest rate. Traders will wait near the support points for opportunities to enter long positions when there is a bullish reaction. Because the trend is still bullish, traders should still avoid short positions.
Today’s critical levels to watch:
Support: 1.1185, 1.1120, 1.1000
Resistance: 1.1300, 1.1360
GBP/USD
GBP/USD started its bearish correction phase and has dropped below 1.3000. The pair will try to continue weakening toward the 1.2800 level. Traders can wait near that support point for opportunities to enter long positions. When a bullish reaction occurs, it is a confirmation for traders to enter long positions.
Today’s critical levels to watch:
Support: 1.2800, 1.2625, 1.2200
Resistance: 1.3000, 1.3250, 1.3300, 1.3330
USD/JPY
USD/JPY bounced off the daily SMA 200 point and is moving up at the moment. The pair probably will move up to reach 141.00 where traders can wait for a bearish reaction. If there is a bearish reaction at that point then traders will use the opportunity to enter a short position. As long as the pair continues to form higher swing highs and higher swing lows, the trend of the pair is still bullish.
Today’s critical levels to watch:
Support: 139.30, 137.70, 133.00
Resistance: 140.00, 141.00, 145.00, 147.00
AUD/USD
AUD/USD dipped and tested the spot near 0.6750. The pair then had a bullish reaction today and moved up above 0.6820. Since the direction of the trend has changed to bullish and only requires one more confirmation (the formation of a higher swing high), traders should continue to maintain long positions. Any bearish correction will be an opportunity to enter long positions.
Today’s critical levels to watch:
Support: 0.6820, 0.6750, 0.6700
Resistance: 0.7000