USDX (USD Index)
The U.S. dollar index is waiting for the time to continue its bearish trend. For now, there is room for upward movement towards the daily SMA 200 where traders can use this opportunity to enter short positions. However, if the index manages to close above the daily SMA 200 and form a higher swing high then the direction of the trend could change to bullish again. The 100.00 support level is a long-term downside target to watch when a bearish continuation happens.
EUR/USD
EUR/USD bounced from 1.0650 and headed towards 1.0800. The pair seems to lost upward momentum near the 1.0800 level. For now, the consolidation will take place between 1.0650 – 1.0800 and traders will wait for further reaction. If the pair continues to weaken, the daily SMA 200 is the next bearish target to watch.
Today’s critical levels to watch:
Support: 1.0650, 1.0339
Resistance: 1.0800, 1.0900, 1.1000
GBP/USD
GBP/USD has reversed its direction and started trading upward again toward the 1.2625 level. A bearish reaction occurred before the pair managed to reach that point today. There is no change to the bullish scenario where the pair continues its bullish trend. However, If it turns out that the pair is moving down again then the 1.2000 – 1.2200 area and daily SMA 200 are support points that can be used to enter long positions.
Today’s critical levels to watch:
Support: 1.2200, 1.2100, 1.2000, 1.1450
Resistance: 1.2625, 1.2800
USD/JPY
USD/JPY is moving sideways now near 139.30. The direction of the current trend is bullish and when the pair goes down there is a possibility of a bounce. The pair’s closest support point is at the daily SMA 200 or 137.70 line where there is an opportunity to enter long positions. As long as the pair continue to print higher swing highs and higher swing lows, the direction of the trend continues to be bullish.
Today’s critical levels to watch:
Support: 133.00, 130.00, 125.00
Resistance: 137.70
AUD/USD
AUD/USD is back above its daily SMA 200 and is trying to add to its gains. As noted in the previous analysis, a close above the daily SMA 200 is bullish. The pair need to continue moving upward and print higher swing highs to confirm a bullish continuation. An increase above 0.6820 will be the key to confirm the bullish trend.
Today’s critical levels to watch:
Support: 0.6500, 0.6000
Resistance: 0.6700, 0.6750, 0.6820, 0.7000