USDX (USD Index)
No major development in the U.S dollar index yet. At the current time, the index is moving near the weekly opening level and will wait for further development. The recent news shows that U.S GDP contracted for the second quarter which confirms a recession. Despite the situation, it seems the Fed will not admit it and think that three consecutive contractions are the recession confirmation.
We think the bullish scenario is still intact and expect a bounce from the current level to print a new higher high.
EUR/USD
EUR/USD made a bullish close yesterday but no bullish follow-through in today’s trading session. The pair is under pressure but maintains the positions inside yesterday’s range. The sentiment is mixed but we think the pair will continue the bearish trend to target the level below parity.
Today’s critical levels to watch:
Support: 1.0000
Resistance: 1.0339, 1.0650, 1.0800, 1.0900
GBP/USD
GBP/USD printed a bullish close above 1.2100 yesterday. The pair made an attempt toward the 1.2200 resistance level but show bearish rejection. At the current time, the pair might range between 1.2000 – 1.2200, and traders will continue waiting for breakout from the range to confirm the next direction.
Today’s critical levels to watch:
Support: 1.2000, 1.1450
Resistance: 1.2100, 1.2200
USD/JPY
USD/JPY continues the bearish correction with moderate bearish momentum. The pair will attempt to move toward the previous swing low to test it. Traders will wait near the support level until the bearish pressure recede before entering long positions. We think the pair could continue the bullish trend and print a new higher high.
Today’s critical levels to watch:
Support: 131.47
Resistance: 135.00, 135.19
AUD/USD
AUD/USD made a bullish close near the 0.7000 resistance level yesterday. The pair show bearish rejection from the level today which might indicate a new bearish leg. Traders will continue to maintain short positions with stops above 0.7000 or 0.7160. A close above 0.7000 will confirm continuation 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