USDX (USD Index)
U.S dollar index pushed lower today but the index manage to stage a recovery. At the current time, the index is moving not far from the opening level. If the index could erase all of the losses today and print a bullish candlestick then we might see further upward pressure for the rest of the week. Despite the situation, we think the index will continue the bearish movement and reach the 100.00 handles in the long term. When the index starts a bullish correction, traders could wait near resistance levels for a chance to enter short positions.
EUR/USD
EUR/USD closed below the 1.1000 level yesterday and risk further weakness. However, the pair experience bullish pressure today after the release of the U.S. inflation number. But, the pair seems losing bullish pressure and slowly moving toward the opening level. As mentioned in the previous analysis, when the pair make a bearish correction, traders could use the chance to enter long positions at lower levels.
Today’s critical levels to watch:
Support: 1.0900, 1.0800, 1.0650, 1.0339
Resistance: 1.1000
GBP/USD
GBP/USD is trading upward above the 1.2625 level but immediately lose bullish pressure today. The pair limited below the 1.2625 level and might continue consolidating near the level. If the pair start moving lower and reach the 1.2000 – 1.2200 area or the daily SMA 200 then traders could enter long positions. On the upside, 1.2800 is the next resistance level to watch.
Today’s critical levels to watch:
Support: 1.2200, 1.2100, 1.2000, 1.1450
Resistance: 1.2625, 1.2800
USD/JPY
USD/JPY slowly moving upward again and will target the daily SMA 200. However, the pair experience bearish pressure and fall below yesterday’s low. If the bearish pressure gains more traction then USD/JPY will continue the bearish movement toward the green box area. A new lower low below the green box area might confirm the continuation of a bearish trend. On the upside, the pair needs to close above the daily SMA 200 and print a new higher high to confirm upward continuation.
Today’s critical levels to watch:
Support: 133.00, 130.00, 125.00
Resistance: 137.70
AUD/USD
AUD/USD attempted to extend the bullish movement and reach the 0.6820 resistance level. The pair experience rejection from the resistance level and currently trading near the opening level. If the pair continue moving lower in the coming days then traders will expect a test on the daily SMA 200. On the upside, the pair need to print a new higher high to confirm a bullish continuation.
Today’s critical levels to watch:
Support: 0.6500, 0.6000
Resistance: 0.6700, 0.6750, 0.6820, 0.7000