USDX (USD Index)
The U.S. dollar index continues to stick near the daily SMA 200 and is likely to close not far from it at the end of this week. Traders seem to be preparing themselves before the Fed’s interest rate announcement next week. The index movements after the announcement will wait for the results of the announcement from the Fed. If it turns out that the Fed cuts interest rates early, the weakening of the index will immediately continue. Meanwhile, if there is no interest rate cut, the index movement may remain flat until the next Fed meeting.
EUR/USD
EUR/USD is starting to move up again after a decline that almost reached the daily SMA 200 point. The pair has the opportunity to move up to test the 1.0900 point again. However, the pair is also likely to consolidate between 1.0800 – 1.0900 ahead of the Fed’s interest rate announcement next week. A continuation of the decline below 1.0800 and the daily SMA 200 will bring the pair down to 1.0650.
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 continues to weaken towards 1.2800. The pair has the opportunity to test the support point and bounce from it. For now, the pair’s movement is still in the 1.2800 – 1.3000 area. If the pair can bounce up sharply from 1.2800, a higher swing low point will be formed, and the opportunity for the bullish trend to continue.
Today’s critical levels to watch:
Support: 1.2800, 1.2625, 1.2200, 1.2100, 1.2000
Resistance: 1.3000
USD/JPY
USD/JPY bounced off a spot near 151.80 which was a temporary bullish reaction. The pair is still on a bearish path and the next decline will test the 151.80 points and the daily SMA 200. Closing below these two support points will confirm the continuation of the bearish trend which has currently been formed since the decline below the trendline. There is also a possibility that the pair will consolidate near 151.80 and the daily SMA 200 until the Fed meeting at the end of the year.
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 below the daily SMA 200 and will now try to continue its weakness towards 0.6500. The bearish state of the pair has not changed even though there was a bullish reaction today. If the increase can continue and there is a close above the daily SMA 200 then AUD/USD can start an upward movement. However, if the pair falls below 0.6500 and then forms a lower swing low then the bearish trend may continue.
Today’s critical levels to watch:
Support: 0.6500, 0.6350, 0.6170, 0.6000
Resistance: 0.6700, 0.6750, 0.6820, 0.7000