USDX (USD Index)
The U.S. dollar index finally continued to strengthen, indicating that the market was pessimistic that interest rate cuts would occur quickly. The index situation looks like it will continue to strengthen and traders should be careful if they want to enter a short position on the U.S. dollar. For now, traders will observe the closing of the dollar index. If it turns out that the index turns down and then closes below the daily SMA 200 SMA next week, the situation could turn bullish again.
EUR/USD
EUR/USD moved down with quite a strong bearish momentum towards 1.0650. The downward movement of this pair is likely to reach 1.0650 and traders will observe the reaction of the pair. Because the current situation is bearish, traders will wait for the formation of a lower swing low point to confirm continued weakness in EUR/USD. As long as there is no lower swing low point, the situation can still turn bullish.
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 weakened after bouncing from 1.2800 but in general, the pair’s position is still in the 1.2625 – 1.2800 area. Consolidation will still take place in the pair within the 1.2625 – 1.2800 area and traders will wait for a close outside the area. When a closing occurs outside the area, the trader will receive confirmation of the direction of the pair’s next movement.
Today’s critical levels to watch:
Support: 1.2625, 1.2200, 1.2100, 1.2000
Resistance: 1.2800, 1.3000
USD/JPY
USD/JPY jumped up at the start of trading but now the pair has weakened to its opening point. If the pair closes near the current point then a bearish pin bar pattern will be formed. Breaking the low point of the pattern will bring the pair to move down to try to form a lower swing low point. Meanwhile, the pair has not succeeded in forming a higher swing high point, which means the trend may turn bearish when a lower swing low point is formed.
Today’s critical levels to watch:
Support: 150.00, 147.00, 145.00, 142.00, 141.00
Resistance: 155.00
AUD/USD
AUD/USD erased all the gains made in the past 2 days. The pair failed to form a close above 0.6700 so currently there is a possibility of a decline towards the daily SMA 200. If the pair manages to reach the daily SMA 200 and forms a bullish reaction then traders can consider entering a long position. As long as there is no close above 0.6700, the bullish trend has not been confirmed.
Today’s critical levels to watch:
Support: 0.6500, 0.6350, 0.6170, 0.6000
Resistance: 0.6700, 0.6750, 0.6820, 0.7000