USDX (USD Index)
The movement of the U.S. dollar index continues to be bullish where yields on US treasuries continue to increase. If this bullish condition is then coupled with an increase in inflation, the bullish trend in the dollar index might not end in the short term. In the current situation, traders who do not have a long position on the US dollar will wait for a bearish correction or a bearish reversal reaction.
EUR/USD
EUR/USD fell and closed below 1.0500. This bearish closing was also accompanied by the formation of a lower swing low point so there is no indication of a bullish reversal yet. The pair needs a rise and close above 1.0650 for initial confirmation of a bullish reversal.
Today’s critical levels to watch:
Support: 1.0500
Resistance: 1.0650, 1.0800, 1.0900, 1.1000, 1.1120, 1.1185, 1.1300, 1.1360
GBP/USD
GBP/USD bounced down from 1.2200 and closed below 1.2100 yesterday. The pair’s bearish movement will now target the 1.2000 point. Traders will continue to observe the pair’s movement between 1.2000 – 1.2200 for now. Without a bounce or close above 1.2200, the direction of the trend will still be bearish.
Today’s critical levels to watch:
Support: 1.2100, 1.2000
Resistance: 1.2200, 1.2625, 1.2800
USD/JPY
USD/JPY reached 150.00 yesterday and is still maintaining its bullish pressure. Consolidation near 150.00 will take place now and traders will wait for further reaction. The trend is still bullish so traders should not enter short positions at this time. As long as the pair continues to rise and forms higher swing high and higher swing low points, the trend will still be bullish.
Today’s critical levels to watch:
Support: 147.00, 145.00, 141.00
Resistance: 150.00
AUD/USD
AUD/USD fell again and formed a lower swing low point so there is no hope for a bullish reversal yet. The decline will now target the 0.6000 point or the 2022 low at 0.6173. If another lower low is formed below that point then the bearish trend will not end in the medium – long term.
Today’s critical levels to watch:
Support: 0.6170, 0.6000
Resistance: 0.6500, 0.6700, 0.6750, 0.6820, 0.7000