USDX (USD Index)

The U.S. dollar index shows that yesterday’s sharp drop has no clear follow-through today. Furthermore, most major markets are currently closed for holiday observances except for the U.S. As a result, traders should expect the real movement to develop next week. Specifically, the index needs to print a new lower swing low immediately to confirm the bearish continuation. Otherwise, a definitive daily close above 99.00 could quickly cancel the current bearish view.

EUR/USD

EUR/USD made a brief bullish attempt during today’s trading session. However, the pair has already returned right back near its opening level. Because the bullish momentum failed to sustain itself, the market remains undecided. Therefore, the pair might simply trade near the 1.1710 pivot level for now. Consequently, a fresh consolidation phase could easily develop here. Traders should remain patient until a stronger directional signal appears.

Today’s critical levels to watch:

Support: 1.1710, 1.1580, 1.1500, 1.1360, 1.1300

Resistance: 1.1820,1.2000, 1.2070

GBP/USD

GBP/USD successfully managed a breakout above the critical 1.3600 resistance level today. However, the upward momentum is clearly fading already. As a result, the pair has returned right back near its opening level. Because of this stalling action, the price might stick near 1.3600 for the remainder of the session. Therefore, the pair will likely close very near this key pivot level. Traders will watch closely to see if buyers can defend the breakout.

Today’s critical levels to watch:

Support: 1.3450, 1.3330, 1.3300, 1.3250

Resistance: 1.3600

USD/JPY

USD/JPY suffered a major bearish drop yesterday due to the rumor of BOJ intervention. However, there is no clear follow-through during today’s trading session. Despite this lack of immediate downside, the technical damage remains significant. If the pair continues moving lower in the coming sessions, the picture becomes very bearish. Consequently, the daily SMA 200 becomes the next major downside target to watch.

Today’s critical levels to watch:

Support: 158.89, 155.50, 155.00, 153.00, 151.00

Resistance: 160.00, 161.18

AUD/USD

AUD/USD is extending its bullish movement after yesterday’s incredibly strong close. As a result, the pair continues to grind steadily higher in the market. Despite this positive price action, there is no strong upward momentum just yet. Nevertheless, the broader bullish bias remains undeniably intact. Therefore, the pair might simply continue moving toward the 0.7300 to 0.7330 resistance zone. Consequently, traders should expect further upside in the coming sessions.

Today’s critical levels to watch:

Support: 0.7160, 0.7000, 0.6820, 0.6750, 0.6700, 0.6600

Resistance: 0.7300, 00.7330