USDX (USD Index)
No bullish reaction from the daily SMA 200 and the bottom of the green box area. U.S dollar index currently testing the bottom of the range and looking for a bearish breakout below it. Traders might want to stay sideline and watch the index reaction before placing any positions.
The index may close inside the range at the end of the week and trigger a bounce next week.
EUR/USD
EUR/USD breakout above the daily SMA 200 also 1.1000 resistance level. The pair set to target 1.1120 and might continue toward 1.1185 if a further bullish breakout happens. We think 1.1120 might become the tough resistance to break as previous swing high present near it.
If the breakout above 1.1120 happens then EUR/USD will confirm the medium-long-term bullish trend.
today critical levels to watch:
Support: 1.1000, 1.0900
Resistance: 1.1120, 1.1185
GBP/USD
GBP/USD has not printed higher high above Tuesday high but maintains the position above the previous week high. It seems the pair might continue its bullish bounce and target 1.2625 resistance level as mentioned before. Traders who have long positions could continue to hold their positions.
However, if a bearish close happens and GBP/USD falls toward 1.2200 then traders might want to stay sideline.
Today Critical level to watch:
Support: 1.2200, 1.2100, 1.2000
Resistance: 1.2500, 1.2625
USD/JPY
USD/JPY starts a bearish movement in today’s trading session. The pair falls below the previous day low with strong momentum. If the bear could maintain the current bearish momentum until the end of the day then USD/JPY set to fall toward 106.70.
On the other hand, if the pair could reverse its direction and close near its opening level then traders might expect further bullish attempts toward 108.00 and daily SMA 200.
Today critical levels to watch:
Support: 106.70, 105.00
Resistance: 108.00, 109.00
AUD/USD
AUD/USD stick near the daily SMA 200 without major bearish reaction. The pair continue pressing the resistance level and looking for breakout above it. If bullish breakout happens then 0.6700 – 0.6750 will become the target. It is better to wait for the weekly closing level to determine AUD/USD next direction.
Today critical levels to watch:
Support: 0.6500, 0.6300
Resistance: 0.6700