USDX (USD Index)
U.S dollar index resumes the bullish movement as the market is in fear mode. The situation in the Middle East could escalate further as President Biden said that Israel will retaliate against the recent attack. We could say, the U.S. dollar index is at a tilting point where it could break out higher and continue the bullish movement toward the daily SMA 200. Despite the situation, the current upward movement is a bullish correction move and traders will wait until it loses the bullish pressure and shows bearish rejection. When the index forms major bearish reactions, traders could enter short positions.
EUR/USD
EUR/USD bearish movement managed to reach the level near 1.1000 and show a bullish reaction today. The pair slightly moving toward the opening level and might attempt to bounce away from 1.1000. If the pair could immediately move upward with strong bullish pressure then traders could expect a new bullish leg. However, if the pair continues under bearish pressure and stick near 1.1000 then there is a chance of a bearish breakout to target daily SMA 200 and 1.0900.
Today’s critical levels to watch:
Support: 1.1000, 1.0900, 1.0800
Resistance: 1.1120, 1.1185, 1.1300, 1.1360
GBP/USD
GBP/USD fell below 1.3250 with strong bearish pressure today. The bearish movement comes after the BOE’s commentary on interest-rate policy where the central bank will need more inflation data evidence before a more aggressive rate. At the current time, the bearish movement in the GBP/USD could be regarded as a healthy bearish correction. As long as the pair continues printing new higher swing highs and higher swing lows, there is no reason to turn bearish in the long term.
Today’s critical levels to watch:
Support: 1.3050, 1.3000
Resistance: 1.3250, 1.3300, 1.3450
USD/JPY
USD/JPY closed inside the 145.00 – 147.00 area yesterday and there is a bullish extension today. The pair managed to reach 147.00 but stayed contained inside the 145.00 – 147.00 area. Will the pair breakout and close above 147.00 to turn the trend bullish for the medium term? Alternatively, will it continue to stay inside the 145.00 – 147.00 range until the next major data release?
Today’s critical levels to watch:
Support: 145.00, 142.00, 141.00
Resistance: 147.00, 150.00, 155.00
AUD/USD
AUD/USD continues under bearish pressure but has not reached the 0.6820 level yet. The pair’s long-term trend is bullish and the current bearish correction will test support levels. Traders will use the chance to add long positions at a lower level. Even though the pair fall below 0.6750 or 0.6700, the trend will stay bullish. When the pair closes below the daily SMA 200 then it is time to consider a bearish scenario.
Today’s critical levels to watch:
Support: 0.6750, 0.6700, 0.6500
Resistance: 0.6820, 0.7000