USDX (USD Index)

The U.S. dollar index previously pushed down below the daily SMA 200 point, thus confirming the continuation of the bearish trend. However, U.S. inflation figures which was higher than expected, brought the index back up and is now above the daily SMA 200. This bullish movement also occurred ahead of the Fed FOMC meeting which is expected to hold interest rates and possibly delay cutting interest rates this year.

For now, traders will tend to wait for the market reaction after the Fed’s announcement.

EUR/USD

EUR/USD moved down before reaching 1.1000 and has now reached the daily SMA 200. The pair is likely to consolidate near the daily SMA 200 for now. The reaction after the Fed’s announcement this week will be a confirmation for the direction of the pair’s next movement. Alternatively, traders can wait for the formation of a higher swing high point for bullish confirmation and a lower swing low point for bearish confirmation.

Today’s critical levels to watch:

Support: 1.0800, 1.0650, 1.0500

Resistance: 1.0900, 1.1000, 1.1120, 1.1185, 1.1300, 1.1360

GBP/USD

GBP/USD briefly left the 1.2625 – 1.2800 area and is expected to continue its bullish movement. However, the pair apparently experienced selling pressure and returned to this area. There is a possibility that the decline may still continue and the pair tests the point 1.2625. If the pair can stay within the area and the U.S. dollar sentiment changed again after the Fed’s announcement, so there is a possibility of continuation of the bullish movement.

Today’s critical levels to watch:

Support: 1.2625, 1.2200, 1.2100, 1.2000

Resistance: 1.2800, 1.3000

USD/JPY

USD/JPY bounced off the daily SMA 200 point and is now moving up above 150.00 again. The pair will try to form a higher swing high to confirm the continuation of the bullish trend. However, for now traders will wait for market developments after the Fed meeting. If it turns out that there is a drastic reversal in direction and the pair drops to form a lower swing low point then the trend can change to bearish.

Today’s critical levels to watch:

Support: 147.00, 145.00, 142.00, 141.00

Resistance: 150.00

AUD/USD

AUD/USD fell back below the daily SMA 200 point after a bullish attempt towards 0.6700. Currently the pair has not formed a lower swing low point and is likely to consolidate near 0.6500. The pair’s reaction near 0.6500 after the Fed’s announcement will be a clue to the direction of the next movement. If the pair moves back above the daily SMA 200 and forms a higher swing high then the trend may become more bullish.

Today’s critical levels to watch:

Support: 0.6500, 0.6350, 0.6170, 0.6000

Resistance: 0.6700, 0.6750, 0.6820, 0.7000