USDX (USD Index)

U.S dollar index finally tumbled and start a major bearish movement after the release of U.S CPI data. Softer-than-expected CPI numbers become a major reason for the market to bring the U.S dollar index lower. Under the current situation, the Fed might increase the interest rate by 50 bps and slow down the next plan to raise the interest rate.

Despite the situation, no change to the U.S dollar index’s long-term trend yet. The market needs to bring the index down below the daily SMA 200 and print a new lower swing low to confirm the bearish reversal.

EUR/USD

EUR/USD rising with strong bullish momentum from the parity level and soon will reach the 1.0339 upward targets. The pair also getting near the daily SMA 200 where a bearish reaction might happen. Traders who have long positions will protect the position by moving stop order just below the parity level.

If the pair start moving lower then traders will use the level near parity to enter long positions.

Today’s critical levels to watch:

Support: 0.9500

Resistance: 1.0000, 1.0339

GBP/USD

GBP/USD is on the path upward to target the 1.2000 – 1.2200 area and the daily SMA 200. Traders will monitor the pair reactions near the resistance levels. If the pair form a bearish reaction then traders could enter short positions with a tight stop and 1.1450 as the bearish target. We think the long-term trend might change depending on the pair’s ability to print a higher low.

Today’s critical levels to watch:

Support: 1.0500, 1.0000

Resistance: 1.1450, 1.2000, 1.2100, 1.2200

USD/JPY

USD/JPY finally start a major bearish movement and breakout from the 145.00 – 150.00 area. The pair immediately reach the 139.30 support level and will test it. If the pair continue the bearish movement then traders will wait near the trendline and 135.50 support level for bullish reactions.

The bear needs to push the pair down and close below 130.00 or the daily SMA 200 to confirm the long-term bearish reversal.

Today’s critical levels to watch:

Support: 145.00, 140.00, 139.30, 135.19, 135.00

Resistance: 150.00

AUD/USD

AUD/USD extends the bullish movement above the 0.6500 level. The pair now will target 0.6700 and 0.7000 resistance levels next. We think a bearish reversal might happen near the resistance level and AUD/USD might move lower to test 0.6500 for final conclusion on the next long-term direction.

Today’s critical levels to watch:

Support: 0.6500, 0.6000

Resistance: 0.6700, 0.6750, 0.6820, 0.7000