USDX (USD Index)
U.S dollar index made a bullish close yesterday but there is no bullish follow-through today. The index has relinquished most of the gain and might close the day lower below yesterday’s low. It seems the index will resume the bearish correction to target the 100.00 – 100.30 area. Traders will continue waiting near the support area for a chance to enter long positions in the U.S dollar.
EUR/USD
EUR/USD bounce from the 1.0650 support level today and erased all of the losses that happened yesterday. The pair will attempt to build more bullish pressure to breakout above the 1.0800 resistance level. On the upside, 1.1000 might become the bullish target where a bearish reversal could happen.
Today’s critical levels to watch:
Support: 1.0650, 1.0339, 1.0000
Resistance: 1.0800, 1.0900
GBP/USD
GBP/USD closed lower yesterday but the pair recovered most of the losses today. We might see a test on the 1.2625 resistance level this Friday after U.S job data. If the pair could breakout and close above 1.2625 then traders will expect a continuation toward 1.2800 and 1.3000. A major bearish reaction from both resistance levels will become confirmation to enter short positions.
Today Critical level to watch:
Support: 1.2500, 1.2400, 1.2200, 1.2100, 1.2000
Resistance: 1.2625, 1.3000
USD/JPY
USD/JPY resumes the long-term bullish trend without a test on the blue box area. There is no chance for traders to enter long positions yet. At the current time, traders who have long positions could continue to hold the positions. Meanwhile, traders who have no long positions will continue waiting for a bearish correction toward support levels.
Today’s critical levels to watch:
Support: 126.00, 125.00, 120.00
Resistance: 130.00
AUD/USD
AUD/USD launch upward from the 0.7160 level and currently trading at the daily SMA 200. Traders will monitor the pair’s reaction from the resistance level. If the pair get rejected with a strong bearish reaction then we might see a bearish continuation. However, a close above the averages at the end of the week might initially confirm a medium-term bullish reversal.
Today critical levels to watch:
Support: 0.7160, 0.7000, 0.6820, 0.6750
Resistance: 0.7300