USDX (USD Index)
The U.S. dollar index continues to increase ahead of the Fed’s interest rate decision, which indicates that the market is choosing to be careful and exit its bearish position for the time being. As previously written, the index will likely still move near the daily SMA 200 for now until the interest rate announcement. If it turns out there is a surprise interest rate cut earlier then the index situation could turn bearish. Meanwhile, if the interest rate cut is as planned, the index could continue its increase or consolidate near the daily SMA 200.
EUR/USD
EUR/USD continues to weaken to the daily SMA 200 and also 1.0800. The pair will test both support points for now and traders will wait for a reaction. If the pair can bounce up with strong bullish momentum then there is a chance the bullish trend can continue. Meanwhile, if the pair continues to weaken and forms a lower swing low point, the bearish trend will continue with the target point of 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 has reached 1.2800 and managed to bounce up yesterday. However, the situation of the pair appears to still be under bearish pressure at the moment and has the possibility of retesting the 1.2800 points. Pair consolidation between 1.2800 – 1.3000 will continue for the time being. If the pair turns out to close below 1.2800 then there is a chance of further decline towards daily SMA 200 and also 1.2625.
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 up from the daily SMA 200 and 151.80 and is now seen continuing its rise. As previously written, the current increase is a temporary bullish reaction and is expected to only last for the short term. Traders will wait for the continuation of the bearish trend on the pair and a break below the daily SMA 200 and 151.80 for further bearish confirmation.
Today’s critical levels to watch:
Support: 150.00, 147.00, 145.00, 142.00, 141.00
Resistance: 155.00
AUD/USD
AUD/USD is not far from 0.6500 and is likely to resume its weakness soon. The pair is in a bearish situation below the daily SMA 200 point so traders should postpone entering long positions. If the pair manages to rise above the daily SMA 200 point, traders will get initial bullish confirmation. A close above 0.6700 is needed to confirm a bearish to bullish reversal in the medium-long term.
Today’s critical levels to watch:
Support: 0.6500, 0.6350, 0.6170, 0.6000
Resistance: 0.6700, 0.6750, 0.6820, 0.7000