USDX (USD Index)
U.S dollar index made a bullish close yesterday before today’s FOMC meeting. The Fed will decide interest-rate which might trigger volatility in the market. Traders will wait for the reactions after the announcement. If the index continues moving upward then it will target a new higher high.
On the lower side, if a bearish breakout happens then the index will target 103.82.
EUR/USD
EUR/USD made a bearish close yesterday and might resume the bearish movement to retest the parity level. We think there is more chance for bearish movement below parity to happen. Today FOMC meeting might become the catalyst for the capitulation below the parity movement. Traders might want to stay out of long positions and wait until bearish pressure receded before entering long positions.
Today’s critical levels to watch:
Support: 1.0000
Resistance: 1.0339, 1.0650, 1.0800, 1.0900
GBP/USD
GBP/USD trading inside the 1.2000 – 1.2200 area now before the Fed interest-rate decision. The pair’s next direction will depend on the breakout direction. We still think the pair will resume the bearish trend and target a new lower low on the chart. However, if the pair close above 1.2200 then traders will prepare for a bullish correction toward 1.2625, 1.2800, and daily SMA 200.
Today’s critical levels to watch:
Support: 1.2000, 1.1450
Resistance: 1.2100, 1.2200
USD/JPY
USD/JPY holding out near the top and printing two bullish closes. The pair is expected to continue the bullish trend and target a new higher high. However, if a bearish correction happens then traders will wait near 135.00 and 131.50 for a chance to enter more long positions. A breakout and close below 131.50 might confirm a new bearish trend.
Today’s critical levels to watch:
Support: 135.19, 135.00
Resistance:
AUD/USD
AUD/USD trading upward but staying below 0.7000 before the Fed FOMC meeting today. The pair might continue trading sideways near the current level and waiting for reactions. If the pair could close above 0.7000 then it will continue the bullish movement toward 0.7160 and daily SMA 200.
Today’s critical levels to watch:
Support: 0.6820, 0.6750, 0.6700
Resistance: 0.7000, 0.7160, 0.7300