USDX (USD Index)
U.S dollar index breakout above 102.00 easily today with strong bullish momentum. The upward movement happened after job data showed strong results compared to expectations. Under the current situation, it seems the index will continue the bullish movement to target the daily SMA 200. As the bearish structure is broken and the index confirms a double-bottom pattern then traders will refrain from shorting for now until the index makes a bearish reversal.
EUR/USD
EUR/USD breakout below the 1.1000 support level today which means the pair will resume the bearish movement to target 1.0900 and the daily SMA 200. The short-term trend changed to bearish but the long-term continues to be bullish. When the pair form a major bullish reaction near the support level then it is confirmation for traders to add long positions.
Today’s critical levels to watch:
Support: 1.0900, 1.0800
Resistance: 1.1000, 1.1120, 1.1185, 1.1300, 1.1360
GBP/USD
GBP/USD is under bearish pressure and it soon will reach the 1.3050 and 1.3000 support levels. If the area breaks to the downside then traders will prepare near the daily SMA 200. We maintain a bullish outlook but under the current situation, it seems the pair will move lower and test support levels. Traders will wait until the pair form major bullish reactions before entering long positions.
Today’s critical levels to watch:
Support: 1.3050, 1.3000
Resistance: 1.3250, 1.3300, 1.3450
USD/JPY
USD/JPY extends the bullish movement and is now on the path upward to target 150.00 also the daily SMA 200. The pair managed to print a new higher swing high which means the short-term trend has turned bullish. Under the current situation, traders will wait near the resistance level for bearish reactions. When the pair form a major bearish reaction near the resistance level, traders could enter short positions targeting a new lower swing low.
Today’s critical levels to watch:
Support: 147.00, 145.00, 142.00, 141.00
Resistance: 150.00, 155.00
AUD/USD
AUD/USD pushed lower below the 0.6820 support level today which might indicate a deeper bearish correction toward 0.6700 and 0.6750. As mentioned before, even though the pair turns lower, as long as there is no close below the daily SMA 200, the trend will continue to be bullish. Traders will wait for the pair to reach support level and form bullish reactions. When the pair form bullish reactions, traders could enter long positions.
Today’s critical levels to watch:
Support: 0.6750, 0.6700, 0.6500
Resistance: 0.6820, 0.7000