USDX (USD Index)
The upward movement of the U.S dollar index produced a bearish reaction yesterday. It seems a temporary top might have been created and the index will start a bearish correction. If bearish correction started then the index might target 94.00 – 94.30 area. Traders will observe the reaction near the area for a chance to enter long positions.
EUR/USD
EUR/USD mostly lower and printed new lower low yesterday. However, the bearish pressure intercepted at the 1.1300 support level, and a bullish pin bar pattern formed. At the current time, the pair might continue trading between 1.1300 – 1.1360 and wait for a breakout. If a bullish breakout happens then a bullish correction toward 1.1580 and 1.1710 might happen.
Today critical levels to watch:
Support: 1.1300
Resistance: 1.1360, 1.1500, 1.1580, 1.1710
GBP/USD
GBP/USD managed to return above 1.3450 yesterday and might push further upside to target 1.3600. Traders will wait for the pair to trade higher and enter short positions after a major bearish reversal pattern is formed. On the upside, the pair needs to close above daily SMA 200 and 1.4000 to turn the bearish trend to bullish.
Today Critical level to watch:
Support: 1.3450, 1.3330, 1.3300, 1.3250, 1.3000
Resistance: 1.3600, 1.3835, 1.4000
USD/JPY
USD/JPY closed above 114.50 resistance level, however, the pair immediately pushed lower yesterday and erased all of the gains. At the current time, there is no bearish follow-through as the pair continue trading near 114.50. Will the pair start a bearish correction or continue its bullish movement to target 115.90?
Today critical levels to watch:
Support: 113.00, 112.00
Resistance: 114.50, 115.00
AUD/USD
AUD/USD could not maintain a position above 0.7300 – 0.7330 area. The pair made a bearish close below the area yesterday and is now set to continue lower to target 0.7160. Under the current situation, traders will let the pair continue lower or start a bullish correction to enter short positions near a resistance level.
Today critical levels to watch:
Support: 0.7330, 0.7300
Resistance: 0.7450, 0.7500, 0.7550