USDX (USD Index)
The U.S. dollar index maintains its bullish pressure ahead of the Fed’s interest rate announcement. This bullish situation will continue and traders will now be waiting for the interest rate announcement and market reaction. If the index continues to strengthen then the point 103.50 and daily SMA 200 can be targeted for an increase. Meanwhile, if there is a decline below the point 100.00 then the bearish trend can continue.
EUR/USD
EUR/USD might hit 1.1000 before the Fed’s rate announcement. The movement of the pair is still bearish and is an opportunity for traders to enter long positions. After the Fed announcement, if there is a strong bullish bounce then the bullish trend may continue. The next bullish target is the 1.1300 – 1.1360 area.
Today’s critical levels to watch:
Support: 1.1000
Resistance: 1.1120, 1.1185, 1.1300, 1.1360
GBP/USD
GBP/USD is falling and has reached 1.2800. For now, consolidation is underway near that point and traders will be watching for further reaction. As previously written, consolidation is likely to last until the interest rates announcement by the Fed. If the pair bounces up strongly then the bullish trend can continue.
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 has closed above 141.00 and is now holding its ground above it. The pair might stick near that point until the Fed’s rate announcement this week. If the pair drops sharply and then forms a lower swing low then the bearish trend will continue. Conversely, if the pair can climb up and form a higher swing high point then the bullish trend can continue.
Today’s critical levels to watch:
Support: 140.00, 139.30, 137.70, 133.00
Resistance: 141.00, 145.00, 147.00
AUD/USD
AUD/USD fell to reach its daily SMA 200 and the pair has been able to hold above that point for now. Consolidation near that point will continue until the Fed’s rate announcement this week. If the pair can bounce up and then form a higher swing high then the bullish trend can continue. Conversely, if the decline continues below the daily SMA 200 and forms a lower swing low then the bearish trend will continue.
Today’s critical levels to watch:
Support: 0.6750, 0.6700
Resistance: 0.6820, 0.7000