USDX (USD Index)
The decline in the U.S. dollar index temporarily stopped ahead of Fed Jerome Powell’s speech. Market players seem to be wary of any surprises in the speech. In terms of trend, the U.S. dollar index might continue the bearish movement if the Fed continues to maintain dovish comments or does not indicate an increase in interest rates. Traders will wait for a reaction near the daily SMA 200 point if the decline can continue.
EUR/USD
EUR/USD moved down closer to 1.06500 after previously managing to rise above it. Currently, traders will wait for a reaction near this point. If a bullish bounce occurs then the pair can continue its upward movement towards daily SMA 200. Meanwhile, if there is a decline and closes below 1.06500 and is followed by the formation of a lower swing low point then the direction of the trend might become bearish again.
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 bounced down from the daily SMA 200 point and moved towards the 1.2000 – 1.2200 area as previously estimated. If the pair manages to reach this area and there is a bullish reaction then traders can consider entering a long position. A close above the daily SMA 200 point would be a strong confirmation of 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 is back above 150.00 and has the opportunity to continue its bullish trend targeting a higher swing high point. As long as the pair can continue to form higher swing high and higher swing low points, the direction of the trend is still bullish. If the pair falls below 150.00 and forms a lower swing low point then the direction of the trend may change to bearish again.
Today’s critical levels to watch:
Support: 147.00, 145.00, 141.00
Resistance: 150.00
AUD/USD
AUD/USD fell with significant bearish momentum from the 0.6500 point. If the bearish momentum can be reduced and the pair does not form a lower swing low point then the direction of movement can return to bullish. The pair’s upward target is still at the daily SMA 200 and traders will wait for further reaction near that point.
Today’s critical levels to watch:
Support: 0.6170, 0.6000
Resistance: 0.6500, 0.6700, 0.6750, 0.6820, 0.7000