USDX (USD Index)
The U.S. dollar index bounced up to reach the daily SMA 200 point and is now moving near that point. There has been no strong reaction indicating the next direction of movement. For now, the index will test the daily SMA 200 point and traders will continue to wait for further reactions. If the index makes a close above the daily SMA 200 point then there is a chance of further strengthening. If the Fed meeting next week brings a surprise cut in interest rates, the index will move down sharply. Meanwhile, if there is no interest rate cut, the index is likely to stay near the daily SMA 200 until the next Fed meeting in September.
EUR/USD
EUR/USD bounced down from 1.0900 so it is estimated that the pair will try to move down towards daily SMA 200 and 1.0800. In general, the trend has changed to bullish for now and the decline that occurs in the pair can be used to add to long positions. When there is a bullish reaction at 1.0800 or daily SMA 200, traders can enter a long position.
Today’s critical levels to watch:
Support: 1.0800, 1.0650, 1.0500
Resistance: 1.0900, 1.1000, 1.1120, 1.1185, 1.1300, 1.1360
GBP/USD
GBP/USD moved down away from 1.3000 as expected. The pair has the opportunity to move down towards 1.2800 where traders can use this opportunity to enter a long position. The trend has turned bullish so short positions are not recommended. However, if traders still want to speculate on entering a short position, they can wait until the pair reaches 1.3125 or 1.3250.
Today’s critical levels to watch:
Support: 1.2800, 1.2625, 1.2200, 1.2100, 1.2000
Resistance: 1.3000
USD/JPY
USD/JPY is holding near the trendline after breaking below it. The pair will now consolidate near the trendline and wait for further developments. If the pair bounces up from the trendline then it can be said that a lower swing low point has not been formed. The bullish trend will continue as long as there is no swing high or lower swing low point formed.
Today’s critical levels to watch:
Support: 150.00, 147.00, 145.00, 142.00, 141.00
Resistance: 155.00
AUD/USD
AUD/USD fell sharply below 0.6700 today. If this decline continues, the pair could weaken towards the daily SMA 200 and test the previous swing low point. A close below the daily SMA 200 or the formation of a lower swing low would be further bearish confirmation. Traders will wait for the pair’s return above 0.6700 to confirm the continuation of the bullish movement.
Today’s critical levels to watch:
Support: 0.6750, 0.6700, 0.6500, 0.6350, 0.6170, 0.6000
Resistance: 0.6820, 0.7000