USDX (USD Index)

Yesterday’s bearish close on the index was only a temporary reaction before the debt-ceiling decision. The movement of the index is currently bullish due to fears that an agreement will not be reached. It is estimated that after the agreement, the index will turn bearish and continue the downward movement. In this situation, traders could speculate on entering a short position in the U.S. dollar assuming that a deal will be struck.

EUR/USD

EUR/USD had a bullish reaction yesterday and has yet to reach the support at 0.6500. As was written yesterday, the pair has resumed its weakening because debt-ceiling negotiations have not reached a consensus. When the pair reaches 0.6500 and produces a bullish reaction, that’s when traders can enter long positions.

Today’s critical levels to watch:

Support: 1.0650, 1.0339

Resistance: 1.0800, 1.0900, 1.1000

GBP/USD

GBP/USD still has room to move down towards the daily SMA 200 and the 1.2000 – 1.2200 area. The pair continues to weaken in today’s trading and has the opportunity to fall toward the support level previously written. Traders will wait for a bullish reaction for an opportunity to enter long positions.

Today’s critical levels to watch:

Support: 1.2200, 1.2100, 1.2000, 1.1450

Resistance: 1.2625, 1.2800

USD/JPY

USD/JPY closed bearish yesterday and is likely to start a bearish correction phase toward the daily SMA 200. If the decline continues then the trendline is where traders will watch for reactions. As long as the pair avoided printing a lower swing low, the situation for the pair is still bullish. Traders should be careful if they want to enter a short position.

Today’s critical levels to watch:

Support: 133.00, 130.00, 125.00

Resistance: 137.70

AUD/USD

AUD/USD broke below 0.6500 and formed a lower swing low. It seems that the pair’s bearish situation will continue and traders will still be waiting for further reactions. When the pair can reverse quickly and close above 0.6500 then there is a chance for a bounce up.

Today’s critical levels to watch:

Support: 0.6500, 0.6000

Resistance: 0.6700, 0.6750, 0.6820, 0.7000