USDX (USD Index)
The U.S. Dollar Index printed a bearish engulfing pattern and continued with bearish follow-through, indicating increasing downside pressure after the recent rebound. The decline suggests that sellers are regaining control in the short term as the market reacts to improving risk sentiment and the pullback in crude oil prices. If the bearish momentum continues to build, the index could move lower to test the daily SMA 200, which now becomes the next key support area. However, a stabilization above the current level could lead to consolidation before the market decides on the next directional move.
EUR/USD
EUR/USD bounced strongly from the 1.1500 support level and printed a bullish engulfing pattern, signaling that buyers stepped in aggressively at the support area. The rebound suggests that the pair may attempt to recover further in the near term after the recent decline. Price is now moving higher toward the daily SMA 200 and the 1.1710 resistance level. A daily close above both the moving average and the resistance would confirm bullish continuation and open the door for further upside movement. Until that confirmation occurs, the pair may continue trading in a recovery phase within the broader corrective structure.
Today’s critical levels to watch:
Support: 1.1580, 1.1500, 1.1360, 1.1300
Resistance: 1.1710, 1.1820,1.2000, 1.2070
GBP/USD
GBP/USD climbed above the 1.3450 level and is currently trading near a descending trend line resistance. The recent move suggests that bullish momentum is attempting to build after the previous consolidation phase. If the pair manages to break above the trend line resistance, the upward movement could extend further toward higher resistance levels. However, rejection from the trend line could trigger another pullback toward the nearby support area before the market attempts another breakout.
Today’s critical levels to watch:
Support: 1.3330, 1.3300, 1.3250
Resistance: 1.3450, 1.3600, 1.3835, 1.40000
USD/JPY
USD/JPY showed a bearish attempt after closing with a pin bar formation near resistance. The candlestick pattern suggests rejection from higher levels and indicates that sellers may attempt to push the pair lower in the short term. Despite the bearish signal, the broader structure still shows a higher swing high, meaning the longer-term bullish trend remains intact. The market may experience a temporary pullback or consolidation before deciding whether to continue the uptrend.
Today’s critical levels to watch:
Support: 155.50, 155.00, 153.00, 151.00
Resistance: 158.89, 160.00
AUD/USD
AUD/USD continues to move higher and maintains its bullish structure after the strong rally in previous sessions. The pair remains supported by the improving momentum, with buyers continuing to push the price toward higher resistance levels. The next important level to watch is the 0.7160 resistance area. If the pair manages to break and hold above this level, the bullish movement could extend further. However, failure to break the resistance could lead to a period of consolidation before another attempt higher.
Today’s critical levels to watch:
Support: 0.7000, 0.6820, 0.6750, 0.6700, 0.6600
Resistance: 0.7160