USDX (USD Index)
The U.S. dollar index is still on a bearish path but is currently strengthening. A bullish correction is normal after successive declines. Currently, traders will wait for the index to lose its bullish pressure and continue weakening towards 103.85. Testing the 200 SMA will determine the direction of the index’s next movement.
EUR/USD
EUR/USD looks to be experiencing bearish pressure and might fall towards 1.0650 to test it. As written previously, if the pair can bounce from that point and form a higher swing low point then the bullish trend can continue. Traders will watch for reaction near this point for now while preparing to enter long positions.
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 has reached the daily SMA 200 point and experienced a bearish reaction yesterday. The pair is now moving down and is likely to test the 1.2000 – 1.2200 area. Still the same as before, it is possible that the current bearish reaction is only temporary, and ultimately the pair can make a bullish close above the daily SMA 200 to confirm the continuation of the bullish movement.
Today’s critical levels to watch:
Support: 1.2100, 1.2000
Resistance: 1.2200, 1.2625, 1.2800
USD/JPY
USD/JPY rose again above 150.00 so the bullish trend has not broken. Consolidation will take place with opportunities for further upside in USD/JPY. Traders will stay out of short positions in this situation until the pair manages to fall below the 150.00 point and forms a lower swing low point.
Today’s critical levels to watch:
Support: 147.00, 145.00, 141.00
Resistance: 150.00
AUD/USD
AUD/USD bounced at the 0.6500 point whereas previously the pair closed above that point. Even though it is currently bearish, the pair’s condition is quite good with the 0.6500 point being reached. If the pair can withstand bearish pressure and reverse upwards above the 0.6500 points, the trend can change to bullish with the daily SMA 200 point as the upward target.
Today’s critical levels to watch:
Support: 0.6500, 0.6170, 0.6000
Resistance: 0.6700, 0.6750, 0.6820, 0.7000