USDX (USD Index)
The bearish pressure on the U.S dollar index continue yesterday as the index made another bearish close. However, the index show a bullish reaction today before the release of U.S inflation data. If the index could bounce from the current level and start moving higher after the release of inflation data then the bullish trend might continue.
On the other hand, further weakness and a close below 110.00 will become bearish confirmation toward 107.50.
EUR/USD
EUR/USD closed above the parity level and maintain the position above it. The pair might continue the bullish movement to target the 1.0339 resistance level. However, if the pair turn lower and close below the parity level again then the bearish trend might continue. Traders will wait for further reactions near the parity level.
Today’s critical levels to watch:
Support: 0.9500
Resistance: 1.0000, 1.0339
GBP/USD
GBP/USD sticks near the 1.1450 level and might consolidate near it until the release of U.S inflation data. On the upside, if the pair continues the bullish movement then it will target the 1.2000 – 1.2200 area. On the lower side, a close below 1.1450 and a new lower low will become bearish confirmation toward the 1.0500 and parity level.
Today’s critical levels to watch:
Support: 1.0500, 1.0000
Resistance: 1.1450, 1.2000, 1.2100, 1.2200
USD/JPY
USD/JPY is trading lower but maintaining the position inside the 145.00 – 150.00 area. The pair will test the bottom of the range and provide traders with the chance to enter long positions when bullish reactions happen. As long as the pair stays inside the 145.00 – 150.00 area then traders could continue applying the range trading strategy.
Today’s critical levels to watch:
Support: 145.00, 140.00, 139.30, 135.19, 135.00
Resistance: 150.00
AUD/USD
AUD/USD made another bullish close yesterday but the pair could not continue moving upward today. The pair might trade sideway near the 0.6500 level for now. If the pair extends the bullish movement then it will target the 0.6700 and 0.7000 resistance levels. On the other hand, a major bearish reversal could bring the pair down to the target of 0.6000.
Today’s critical levels to watch:
Support: 0.6000
Resistance: 0.6500, 0.6700, 0.6750, 0.6820, 0.7000