USDX (USD Index)
The U.S. dollar index closed bullish yesterday and showed indications of further strengthening. However, this strengthening did not continue in today’s trading even though US GDP development data show better than expected results. It seems that market players are focused on inflation data which will be released in tomorrow’s trading session. For now, as long as the index continues to form higher highs and lower lows, traders should avoid entering short positions on the U.S. dollar.
EUR/USD
EUR/USD closed bearish yesterday and looks to continue weakening towards 1.0650. However, the pair reversed upwards and surpassed yesterday’s high point. If the price continues its strengthening, the daily SMA 200 point will be the target for increases. The announcement of inflation data in tomorrow’s trading session will provide further confirmation regarding the direction of the pair’s movement. Traders should wait for market movements tomorrow before planning to enter a position. For now, the pair’s movement range is still in the 1.0650 – 1.0800 area.
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 closed bearish near 1.2625 yesterday and today there is a bullish reaction near that point. If the pair continues strengthening, the range of 1.2625 – 1.2800 is still maintained and consolidation will continue. However, if the pair is still moving lower, the daily SMA 200 point will become the support point that traders use to enter a long position. As long as there is no strong close outside the 1.2625 – 1.2800 area, traders will still assume the consolidation will continue.
Today’s critical levels to watch:
Support: 1.2625, 1.2200, 1.2100, 1.2000
Resistance: 1.2800, 1.3000
USD/JPY
USD/JPY continues to strengthen by forming a higher swing high point. The pair’s bullish situation still shows no indication of a reversal so traders should avoid short positions. If a bearish correction occurs in the pair, traders will wait for a bullish reaction near the support point. When a bullish bounce occurs, it is an opportunity for traders to enter long positions.
Today’s critical levels to watch:
Support: 150.00, 147.00, 145.00, 142.00, 141.00
Resistance: 155.00
AUD/USD
AUD/USD did not move much and the situation of the pair still has not changed. The sideway movement will continue for now and traders will wait for further confirmation. At the top, there is resistance 0.6700 that needs to be broken. At the bottom, the daily SMA 200 and 0.6500 are strong points that need to be broken for the continuation of the bearish movement.
Today’s critical levels to watch:
Support: 0.6500, 0.6350, 0.6170, 0.6000
Resistance: 0.6700, 0.6750, 0.6820, 0.7000