USDX (USD Index)
U.S dollar index extends the bullish movement today before tomorrow’s inflation data release. The upward movement is mostly driven by the ECB announcement on interest-rate. The central bank said that they will start rising interest-rate in July by 25 bps. Under the current situation, it seems the U.S dollar index will continue the upward movement toward 103.82 or print a new higher high.
However, traders will monitor tomorrow’s data release. If the index makes a bearish reversal then we might see another bearish attempt toward the 100.00 – 100.30 area.
EUR/USD
EUR/USD is mostly under pressure today after ECB announced the plan to raise the interest rate. The pair currently testing the 1.0650 support level. As long as there is no breakout from the 1.0650 – 1.0800 area, traders will assume the ranging movement will continue. Under the current situation, traders better wait until the closing of the weekly trading before deciding to enter positions.
Today’s critical levels to watch:
Support: 1.0650, 1.0339, 1.0000
Resistance: 1.0800, 1.0900
GBP/USD
GBP/USD little changed in today’s trading session. The pair is slightly lower but maintains the level near yesterday’s low. It seems traders stay cautious ahead of U.S inflation data. If the pair continues moving lower then it could target the 1.2000 – 1.2200 area. On the upward, if the pair continues the bullish correction then it could target 1.2800 and 1.3000.
Today Critical level to watch:
Support: 1.2500, 1.2400, 1.2200, 1.2100, 1.2000
Resistance: 1.2625, 1.2800, 1.3000
USD/JPY
USD/JPY was slightly lower at the beginning of the trading day. However, the bearish pressure seems to recede and the pair currently has returned to the opening level. The only reason to enter short positions is that USD/JPY getting near the 2002 high. However, there is no major bearish reaction yet which suggests further upside is possible.
If the pair start a bearish correction then traders could prepare long positions near support levels.
Today’s critical levels to watch:
Support: 131.28, 130.00, 126.00
Resistance: 135.00, 135.19
AUD/USD
AUD/USD breakout below the 0.7160 support level with moderate bearish momentum. The pair have made a move before tomorrow U.S inflation data. Despite the bearish situation, if the pair could return above 0.7160 before the weekly closing then there is a chance of bullish continuation. Traders will observe the weekly closing level to determine the pair’s next direction.
Today critical levels to watch:
Support: 0.7160, 0.7000, 0.6820, 0.6750
Resistance: 0.7300