USDX (USD Index)
A sharp decline occurred in the U.S. dollar index today after the release of CPI data which showed a lower than expected inflation. The U.S. dollar index will move down and target 103.85 points and the daily SMA 200. Still the same as before, traders will wait for the index to reach these two points and show a reaction. As long as there is no higher swing high point formed, the direction of the index is still bearish.
EUR/USD
EUR/USD jumped above the daily SMA 200 and 1.0800. This is a very bullish situation and if the pair can close above these two points today then the upward movement can continue. Traders will wait for the daily close for further bullish confirmation. When the pair can close above these two points, traders can use it as a support point to enter a long position.
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 jumped above the daily SMA 200 point and made the situation bullish. The pair has a chance to continue its bullish trend when it closes above this point. For now, traders will wait for the daily close for further bullish confirmation. Long positions can be considered when a bearish correction to test the daily SMA 200 happens.
Today’s critical levels to watch:
Support: 1.2200, 1.2100, 1.2000
Resistance: 1.2625, 1.2800
USD/JPY
USD/JPY looks weakened in today’s trading and has the opportunity to fall towards 150.00. Traders will wait for a close below 150.00 and also the formation of a lower swing low point to confirm the continuation of the bearish movement. As long as a lower swing low point has not been formed, there is still a chance for the bullish movement to continue.
Today’s critical levels to watch:
Support: 150.00, 147.00, 145.00, 141.00
Resistance:
AUD/USD
AUD/USD bounced off 0.6350 and rose sharply today. The pair has almost reached the 0.6500 mark where a breakout and formation of a higher swing high point would be a strong bullish confirmation. If the pair can close above the daily SMA 200 then the pair’s trend will turn extremely bullish.
Today’s critical levels to watch:
Support: 0.6350, 0.6170, 0.6000
Resistance: 0.6500, 0.6700, 0.6750, 0.6820, 0.7000