USDX (USD Index)
U.S dollar index once again reversed its direction and closed bullish yesterday. The consolidation near the 100.00 handle will continue and traders will wait for more confirmation. We think the index might continue sideways until the next job data, inflation data, or FOMC meeting. Traders will observe the change in data before pushing the index further lower. It is only a matter of time before the index resumes the bearish movement and breaks below 100.00.
EUR/USD
EUR/USD is under bearish pressure and fell below the 1.1120 support level today. The pair bearish pressure happens before the release of job data which might be a temporary movement only. Traders will wait for the market reaction after the data release to get confirmation. If the pair erases all the losses and resumes the bullish movement, we might see a breakout above 1.1185. It is better to wait for the closing level at the end of the day for better confirmation.
Today’s critical levels to watch:
Support: 1.1120, 1.1000, 1.0900, 1.0800
Resistance: 1.1185, 1.1300, 1.1360
GBP/USD
GBP/USD looks under bearish pressure and currently trading near the 1.3300 – 1.3330 area. The pair might extend the bearish correction toward the 1.3250 support level to test it. Traders will wait near the 1.3250 level for bullish reactions. When there is bullish reactions, traders could enter long positions targeting 1.3450 and 1.3600.
Today’s critical levels to watch:
Support: 1.3300, 1.3250
Resistance: 1.3450
USD/JPY
USD/JPY bearish reaction from 145.00 is a major confirmation of the continuation of a bearish trend. The pair might be trading upward at the current time, but as long as there is no new higher swing high or a close above the bearish candlestick then the bearish trend could continue. On the lower side, the pair need to print a new lower swing low to confirm the continuation of the bearish trend.
Today’s critical levels to watch:
Support: 142.00, 141.00
Resistance: 145.00, 147.00, 150.00, 155.00
AUD/USD
AUD/USD attempts to continue the bullish movement toward the 0.7000 resistance level. The pair have confirmed the bullish trend above 0.6820. A quick retest happened and the pair managed to bounce from 0.6820 level. If the pair turns lower again to retest the level then traders could use it as a chance to add more long positions.
Today’s critical levels to watch:
Support: 0.6750, 0.6700, 0.6500
Resistance: 0.6820, 0.7000