USDX (USD Index)
Is it the time for a bearish breakout in the U.S dollar index? we think the index may make a breakout soon. Donald Trump has allowed the transition of administration to Joe Biden, news which boost market sentiment. If the index could close below 92.00 this week then traders will expect further bearish continuation.
Without any breakout, the U.S dollar index will continue trade between 92.00 – 93.00.
EUR/USD
EUR/USD maintained the positions above 1.1820 and currently moving higher to test the horizontal line. There is no breakout yet but the pair expected to target the 1.2000 resistance level next. At the current time, traders will observe the pair movement near 1.1820. If the pair closes below 1.1820 then the consolidation between 1.1710 – 1.1820 will continue.
today critical levels to watch:
Support: 1.1820, 1.1710, 1.1580
Resistance: 1.2000
GBP/USD
GBP/USD closed inside the 1.3300 – 1.3330 area and there is bullish follow-through today. The pair will attempt to break out and continue moving upward to test the 1.3450 and 1.3600 resistance level. Traders who have long positions could continue to hold the positions with a stop below 1.3250. It is better to avoid short positions for now.
Today Critical level to watch:
Support: 1.3330, 1.3300, 1.3250
Resistance: 1.3450, 1.3500
USD/JPY
USD/JPY made a bullish reversal and closed above 104.00 yesterday. The pair is attempting to build more bullish pressure and target a close above 105.00. No conclusion yet at the current time. If the pair could close below 104.00 again then traders could continue to hold the short positions with 101.50 and 100.00 as targets.
Today critical levels to watch:
Support: 104.00, 101.50, 101.19
Resistance: 105.00, 106.00, 106.70
AUD/USD
A breakout above the 0.7300 – 0.7330 area has happened today. AUD/USD set to move further higher and target the 0.7450 – 0.7500 area. Traders could use the 0.7300 – 0.7330 area to look for long positions now. AUD/USD will need to maintain the bullish close above 0.7330 by the end of the week to confirm further upside.
Today critical levels to watch:
Support: 0.7300, 0.7160
Resistance: 0.7330, 0.7450, 0.7500