USDX (USD Index)

We have a bearish reaction from the 97.50 resistance level. U.S dollar index settled lower and formed a bearish engulfing pattern. On the daily chart, the U.S dollar index is moving inside a channel which might be a bearish flag pattern.

If the index closes below the bottom of the channel then traders will prepare for medium-long-term bearish continuation.

EUR/USD

EUR/USD bounced from the 1.1185 support level. It is a normal reaction as the pair expected to bounce from 1.1120 – 1.1185 area. On the upside, traders will monitor the pair reaction near the 1.1300 – 1.1360 area. If the pair could not lift itself above the area then EUR/USD might make another bearish attempt to breakout below 1.1120 – 1.1185.

today critical levels to watch:

Support: 1.1185, 1.1120

Resistance: 1.1300, 1.1360, 1.1500

GBP/USD

GBP/USD pushed lower back to 1.2000 – 1.2625 area. The pair projected will continue its bearish movement and target 1.2000 – 1.2200 area. However, the pair made bullish close in the previous trading day. If the pair continues moving upward then traders will watch the reaction near 1.2625 and daily SMA 200.

Today Critical level to watch:

Support: 1.2200, 1.2000

Resistance: 1.2500, 1.2625

USD/JPY

The bull is not giving up the 106.70 support level. We have another bullish attempt in today’s trading session. If the bull could maintain the bullish pressure until the end of the day then USD/JPY will form a bullish engulfing pattern. A further upward movement from in the coming days or weeks will have 108.00 and daily SMA 200 as the target.

Today critical levels to watch:

Support: 106.70, 105.00

Resistance: 108.00, 109.00, 110.00

AUD/USD

AUD/USD made a bullish close yesterday but it is not a bullish engulfing pattern as expected. The pair need to move and close above previous day high to further confirm the bullish scenario toward 0.7000 and 0.7160. At the current time, traders could continue use 0.6820 as a reference level to take long positions.

Today critical levels to watch:

Support: 0.6820, 0.6750, 0.6700

Resistance: 0.7000, 0.7160