USDX (USD Index)
The U.S. dollar index made a bearish close yesterday but there was no continuation of the bearish movement in today’s trading. The index looks slightly stronger but movement may still be sideways for now. As long as there is no strong bearish confirmation, traders should not consider entering short positions on the U.S. dollar. The condition of the index which is above the daily SMA 200 point is an indication to continue maintaining a long position in the U.S. dollar.
EUR/USD
EUR/USD jumped up in yesterday’s trading but is still below the previous week’s low. The pair’s situation is still bearish but there is a possibility that the increase could continue towards daily SMA 200 and 1.0800 to test it. If the pair moves down again and forms a lower swing low point then the bearish trend will continue. Meanwhile, a close above 1.0900 will be a confirmation of the continuation of the bullish trend.
Today’s critical levels to watch:
Support: 1.0650, 1.0500
Resistance: 1.0800, 1.0900, 1.1000, 1.1120, 1.1185, 1.1300, 1.1360
GBP/USD
GBP/USD bounced from 1.2625 and managed to maintain the range of 1.2625 – 1.2800. The pair might move horizontally within the 1.2625 – 1.2800 area and traders will observe the development of the situation. As long as there is no strong close outside this area, the pair will continue its consolidation. Traders can use the bottom of the area and also the daily SMA 200 point for opportunities to add to long positions.
Today’s critical levels to watch:
Support: 1.2625, 1.2200, 1.2100, 1.2000
Resistance: 1.2800, 1.3000
USD/JPY
USD/JPY is generally in a bullish situation and soon has the opportunity to test the swing high point formed previously. When the pair succeeds in forming a higher swing high point, that is when the bullish trend is confirmed to continue. Meanwhile, if a bearish reversal occurs and a lower swing low point is formed then the trend direction will change to bearish.
Today’s critical levels to watch:
Support: 150.00, 147.00, 145.00, 142.00, 141.00
Resistance: 155.00
AUD/USD
AUD/USD is in a neutral situation at the moment where the pair could continue its rise towards 0.6700 or reverse downwards towards 0.6500. As written previously, when the pair forms a close above 0.6700 then the bullish trend can continue. Meanwhile, if a bearish reversal occurs and closes below 0.6500 then the trend direction may change to bearish again.
Today’s critical levels to watch:
Support: 0.6500, 0.6350, 0.6170, 0.6000
Resistance: 0.6700, 0.6750, 0.6820, 0.7000