USDX (USD Index)
Significant weakening occurred in the U.S. dollar index after the release of the latest inflation data showing figures below estimates. The market is excited again and thinks that the Fed will change its plans regarding interest rates. Even though the U.S. dollar index is currently under bearish pressure, technically the index is still near the daily SMA 200 point. A bullish reaction could occur and cancel the bearish situation that has formed. Traders will now observe the reaction of the index near the daily SMA 200. As long as there has not been a strong close below this point, there is still a chance for a reversal.
EUR/USD
EUR/USD surged above the daily SMA 200 and soon reached 1.0900. The pair is in a bullish situation and will try to form a higher swing high to confirm a change in trend to bullish. The current situation is the market’s initial reaction to the release of the latest U.S. inflation data. Will this develop into a strong bullish trend? Or does it turn out to be just a temporary increase before a further decline? Traders should continue to observe the development of the situation for now and wait for confirmation.
Today’s critical levels to watch:
Support: 1.0650, 1.0500
Resistance: 1.0800, 1.0900, 1.1000, 1.1120, 1.1185, 1.1300, 1.1360
GBP/USD
GBP/USD broke above 1.2625 and closed above it. The pair is now on a bullish path and will try to continue strengthening towards 1.2800. In general, it can be said that the bearish trend will not continue with the current increase. However, if there is a quick reversal and the pair closes below the daily SMA 200 at the end of the week then the situation may turn bearish again. For now, traders will still observe the development of the situation to confirm the direction of movement of the pair.
Today’s critical levels to watch:
Support: 1.2200, 1.2100, 1.2000
Resistance: 1.2625, 1.2800, 1.3000
USD/JPY
USD/JPY moves down after the release of U.S. inflation data. This bearish movement is likely to continue towards 151.80 and 150.00. However, there is no strong confirmation to take a short position because there is no lower swing low point yet. If the pair manages to fall and forms a lower swing low point then the decline can continue below the daily SMA 200 point.
Today’s critical levels to watch:
Support: 150.00, 147.00, 145.00, 142.00, 141.00
Resistance: 155.00
AUD/USD
AUD/USD rose and closed not far from 0.6700. This bullish movement also forms a higher swing high point so there is a chance for the bullish movement to continue. If there is a decline then the point around 0.6650 will become a support point where a higher swing low point is formed. Traders will take advantage of the decline that occurs in AUD/USD as an opportunity to enter a long position at a lower point.
Today’s critical levels to watch:
Support: 0.6500, 0.6350, 0.6170, 0.6000
Resistance: 0.6700, 0.6750, 0.6820, 0.7000