USDX (USD Index)

U.S dollar index’s bullish trend continues as the index currently testing the 103.82 level. There was a bearish reaction after the previous week’s FOMC rate announcement. However, the bearish reaction was short-lived and the index erased all of the losses the next day. Under the current situation, traders will continue to avoid shorting the U.S dollar and wait for a bearish correction to enter more long positions.

EUR/USD

EUR/USD on the path lower as it closed below the 1.0650 support level. The pair got rejected from the broken support level last week and is currently moving lower. This week, the pair will consolidate between 1.0500 – 1.06500 while waiting for the next direction. If a bearish breakout happens then the pair could continue lower to test 2017 low and then move toward parity.

Traders will continue to use each bullish bounce as a chance to enter short positions.

Today’s critical levels to watch:

Support: 1.0339

Resistance: 1.0650, 1.0800, 1.0900

GBP/USD

GBP/USD broke below the 1.2625 level and retested it last week. The pair got rejected when the retest happen and printed a new lower low on the daily chart. It seems the pair will continue the bearish trend and target 1.2000 – 1.2100 support levels next. Traders will use the same strategy as in EUR/USD where traders will take short positions when a bullish correction happens.

Today Critical level to watch:

Support: 1.2200, 1.2100, 1.2000

Resistance: 1.2400, 1.2500, 1.2625, 1.3000

USD/JPY

USD/JPY retains the bullish trend and continues printing more higher high on the chart. As mentioned in the previous analysis, traders will continue to avoid shorting the pair as the bullish trend could continue indefinitely without a major bearish correction. When a bearish correction happens, traders could enter long positions near support levels.

Today’s critical levels to watch:

Support: 126.00, 125.00, 120.00

Resistance: 130.00

AUD/USD

AUD/USD stage a bullish attempt last week but failed to secure a close above 0.7160. The pair got rejected near the daily SMA 200 and in threat of further weakness this week. If the bearish pressure continues this week then the pair could target the 0.7000 support level. A breakout below 0.7000 might trigger massive bearish movement.

Today critical levels to watch:

Support: 0.7000

Resistance: 0.7160, 0.7300, 0.7330