USDX (USD Index)

U.S dollar index is in bearish pressure today after the release of U.S key inflation data. The inflation data come out at 3.4% YoY which is in line with analysts’ expectations. It seems the index will close the week near the daily SMA 200 and setting up the floor for next week’s trading.

Next week, traders will observe the release of U.S non-farm employment data once again.

EUR/USD

EUR/USD slowly recovering since the breakout below daily SMA 200. The pair soon will reach the daily SMA 200 and test it. As long as the pair stays below the level, there is no suggestion to become bullish. If the pair get rejected and resume its bearish movement then 1.1820 will become the nearest bearish target.

Today critical levels to watch:

Support: 1.1820

Resistance: 1.2000, 1.2070

GBP/USD

GBP/USD got rejected from the 1.4000 resistance level. The pair currently trading in the middle of 1.3835 – 1.4000. No conclusion yet on the pair’s next direction. If the pair resumes its bearish movement then the 1.3835 support level and the trendline are levels to watch.

Today Critical level to watch:

Support: 1.3835, 1.3600

Resistance: 1.4000, 1.4325

USD/JPY

USD/JPY get rejected from the 111.00 resistance level. The pair traded lower today and soon will test the trendline. At the current time, the trend of the pair continues bullish as long as the pair stays above the trendline and 110.00 support level. Traders could use the trendline to take a long position with a stop below it or the 110.00 support level.

Today critical levels to watch:

Support: 110.00, 109.00

Resistance: 111.00

AUD/USD

AUD/USD extends its bullish movement and distancing itself from the daily SMA 200. If there is no change to the situation then the pair expected to continue upward to test the yellow box area. On the other hand, if the pair start moving lower again and close below daily SMA 200 then we might see a bearish continuation.

Today critical levels to watch:

Support: 0.7550, 0.7500

Resistance: 0.7700