USDX (USD Index)
The U.S. dollar index moved up again above the daily SMA 200 point with quite strong bullish momentum. This move surpassed last week’s high so there is a chance for further upside. The trendline will be the target of the index’s increase where a bearish reaction is possible. However, the index will likely move flat after the Fed’s interest rate announcement this week. Traders should wait for the reactions of the index after the interest rate announcement to determine the direction of the next movement.
EUR/USD
EUR/USD experienced a decline with quite a significant bearish momentum today. The pair reached the daily SMA 200 point and will test it for now. Even though it is bearish, this movement may only last temporarily ahead of the Fed’s announcement this week. Traders will observe the reaction of the pair near the 1.0800 point and the daily SMA 200 for now. If the pair can bounce up at the end of the week and maintain a position above these two points then there is a chance of further upside.
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 reached 1.2800 and there was a bullish reaction today. The pair bounced and erased some of the losses that occurred. If the pair can increase bullish pressure and move up sharply then there is a chance for movement towards 1.3000. Consolidation between 1.2800 – 1.3000 is underway for now and the pair is trying to form a higher swing low point to reverse the trend direction to bullish again.
Today’s critical levels to watch:
Support: 1.2800, 1.2625, 1.2200, 1.2100, 1.2000
Resistance: 1.3000
USD/JPY
USD/JPY managed to bounce off a spot near 151.80 and daily SMA 200 for now. The pair did not continue its bullish movement and moved horizontally waiting for further developments. If the pair continues to weaken below the daily SMA 200 and 151.80 after consolidation then the bearish trend may continue. Traders will continue to observe the pair’s movement near 151.80 and the daily SMA 200 for now.
Today’s critical levels to watch:
Support: 150.00, 147.00, 145.00, 142.00, 141.00
Resistance: 155.00
AUD/USD
AUD/USD has made a close below the daily SMA 200 and does not see a strong bullish reaction. The pair is on a downward path towards 0.6500 for now. If the pair continues to weaken and manages to form a lower swing low point then the trend will become bearish for a while. A close back above the daily SMA 200 would change the current bearish situation. However, a close above 0.6700 is needed to confirm the bullish trend.
Today’s critical levels to watch:
Support: 0.6500, 0.6350, 0.6170, 0.6000
Resistance: 0.6700, 0.6750, 0.6820, 0.7000