USDX (USD Index)
U.S dollar index launched upward after the U.S. election result was announced. The index tested the bearish trendline and closed the day near it. There are bearish reactions today but not a major movement yet. The index might attempt to move upward and retest the trendline again. Traders will focus on the interest-rate announcement by the Fed today. A 25 bps rate cut is expected, but if the Fed decides to cut 50 bps as what happened in the previous meeting, we will see higher volatility movement in the market.
EUR/USD
EUR/USD lowered sharply yesterday after the U.S. election result was announced. The pair breakout below 1.0800 and almost print a new lower swing low on the weekly chart. At the current time, the pair attempting to recover and close above 1.0800. If the pair could erase all of the losses that happened yesterday before the weekly close then the direction will turn bullish. However, if the pair continues the bearish movement then traders will expect a test on the trendline.
Today’s critical levels to watch:
Support: 1.0800, 1.0650
Resistance: 1.0900, 1.1000, 1.1120, 1.1185, 1.1300, 1.1360
GBP/USD
GBP/USD lowered yesterday but managed to hold out above the daily SMA 200. No breakout below the major support level which means the outlook has not changed yet. The pair bounced from the daily SMA 200 and will attempt to close above 1.3000. If the pair could recover all of the loss and close above 1.3050 then the trend will turn bullish again.
Today’s critical levels to watch:
Support: 1.2800
Resistance: 1.3000, 1.3050, 1.3250, 1.3300, 1.3450
USD/JPY
USD/JPY climbed above the previous week’s high and closed above it. It seems the bull will continue to drive the pair further upside. However, traders will monitor closely the pair’s reaction after the FOMC meeting. If the pair turns lower sharply and breaks below the daily SMA 200 then the trend might turn bearish again. At the current time, it is better to stay sideline until the direction is settled.
Today’s critical levels to watch:
Support: 151.80, 150.00, 147.00, 145.00, 142.00, 141.00
Resistance: 155.00
AUD/USD
AUD/USD reacted bearishly yesterday but the pair has erased all of the losses today and climbed above yesterday’s high. The bull has seized the control back and now we will see a new bullish leg. If the pair start another bearish correction then traders could use the daily SMA 200 to add long positions. As it might be the start of a new bullish trend, traders could hold long positions with a stop below 0.6500.
Today’s critical levels to watch:
Support: 0.6700, 0.6500
Resistance: 0.6750, 0.6820, 0.7000