USDX (USD Index)
The bearish correction on the U.S dollar index continue yesterday and a new bearish close happen. However, there is no bearish follow-through today as the U.S dollar index moves upward to test yesterday’s high. No change to the strategy yet, traders will wait for the index to reach the 100.00 – 100.30 area for a chance to enter long positions.
In the long-term, we think the bullish trend will continue and suggest traders avoid short positions unless for speculative positions.
EUR/USD
EUR/USD extend the bullish movement above the 1.06500 level yesterday. There is no bullish continuation today as the pair looks to move lower. A test on the 1.0650 level might happen soon and traders will wait for the reactions. If the pair could maintain the position above the level and bounce from it then the bullish trend is set to continue.
On the upside, 1.0800 and 1.1000 will become the bullish target where traders could enter short positions on bearish reactions.
Today’s critical levels to watch:
Support: 1.0650, 1.0339, 1.0000
Resistance: 1.0800, 1.0900
GBP/USD
GBP/USD made a close near the 1.2626 resistance level but no touch on the level yet. The pair is currently under bearish pressure but maintain the movement inside the previous day’s range. If the pair could close above 1.2625 then the bullish correction could continue toward 1.2800 and 1.3000.
Today Critical level to watch:
Support: 1.2500, 1.2400, 1.2200, 1.2100, 1.2000
Resistance: 1.2625, 1.3000
USD/JPY
USD/JPY closed lower and signally further weakness toward the trendline and the blue box area. Traders will continue waiting until the pair reach the support levels for a chance to enter long positions. At the current time, it is better to continue to avoid short positions as the long-term trend is bullish.
Today’s critical levels to watch:
Support: 126.00, 125.00, 120.00
Resistance: 130.00
AUD/USD
AUD/USD losing upward pressure and start moving lower today. The pair currently testing yesterday’s low and might extend the bearish movement toward the 0.7000 support level. If the pair could print a close above 0.7160 then the bullish correction could extend toward the daily SMA 200. Meanwhile, it is better to stay sideline and get confirmation on the pair’s next direction.
Today critical levels to watch:
Support: 0.7000, 0.6820, 0.6750
Resistance: 0.7160