USDX (USD Index)
The movement of U.S. dollar index is a bullish corrective move right now. We could see the index forming a rising wedge pattern, which is a bearish pattern. If the pattern broken to the downside, then traders will get confirmation to enter short positions. As mentioned before, there is potential for the index to reach 100.67 before turning lower. However, it is not mandatory for the index to reach that level. This week FOMC meeting might trigger huge volatility in the market.
Traders who want to get better confirmation could wait until the interest-rate announcement before placing positions.
EUR/USD
EUR/USD stick near the 1.1300 – 1.1360 area for now. It might attempt to breakout lower to test the 1.1120 – 1.1185 area, where it might bounce upward. Traders will continue to use the moment to add long positions. However, this week FOMC meeting might trigger high volatility in the pair. Traders who want to avoid short-term volatility could wait until the interest-rate announcement before placing orders. Traders who trade long-term might want to continue to hold short positions in the U.S. dollar. (Long positions in EUR/USD)
Today’s critical levels to watch:
Support: 1.1300, 1.1185
Resistance: 1.1360, 1.1500, 1.1580
GBP/USD
GBP/USD continue to be supported by the 1.3250 level as the price bounce upward. However, there is no strong bullish momentum nearing the Fed FOMC meeting this week. The pair might attempt to bounce upward and resume the bullish trend to target 1.3600. On the lower side, if bearish breakout happen, then the pair might turn lower to retest 1.3125, 1.3000 – 1.3050 area. Traders will continue use bearish correction in the pair as a chance to add long positions.
Today’s critical levels to watch:
Support: 1.3250, 1.3150, 1.3050, 1.3000
Resistance: 1.3300, 1.3330
USD/JPY
USD/JPY forming a rising wedge pattern similar to the pattern in U.S. dollar index. The pair bearish situation will continue, especially when bearish breakout happen below the pattern. At the current time, the 145.00 resistance level limiting the upside in the pair. If the pair extend the bullish movement, then 146.50 is the level to watch.
Today’s critical levels to watch:
Support: 142.00, 140.00, 138.00
Resistance: 145.00, 149.20, 150.00
AUD/USD
AUD/USD extended the bullish movement and currently trading near the daily SMA 200 and the 0.6500 level. The pair will continue testing the level for now and looking for close above both of it. When the pair close above both levels, traders will get confirmation of long-term bullish continuation. On the lower side, 0.6350 will become the major support level to watch.
Today’s critical levels to watch:
Support: 0.6350, 0.6250, 0.6000
Resistance: 0.6500, 0.6700