USDX (USD Index)

The U.S. dollar index appears to have experienced a bearish correction last week. However, currently, the index appears to be strengthening again due to the increasing conflict situation between Israel and Hamas. The Israeli Central Bank’s plan to sell foreign currency reserves could cause volatility in markets and currently, the safe-haven currency is enjoying gains. If the U.S. dollar index turns out to be able to continue its bearish correction then the point 105.00 is the decline target.

EUR/USD

EUR/USD bounced off 1.0500 and is on track towards 1.0650. However, changes in the global situation are currently occurring and the pair could turn down again. Traders will observe the pair’s movement between 1.0500 – 1.06500. As written previously, a close above 1.06500 will open an upward path toward the daily SMA 200. A close above the daily SMA 200 can be a bullish confirmation of a long-term 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 managed to close above 1.2200 last week. However, the pair is seen moving down again this week into the 1.2000 – 1.2200 area. Consolidation between 1.2000 – 1.2200 will still take place for now and traders will return to the initial strategy of waiting for a close outside the area. If the pair can immediately rise and close above 1.2200 then a bullish scenario can continue.

Today’s critical levels to watch:

Support: 1.2100, 1.2000

Resistance: 1.2200, 1.2625, 1.2800

USD/JPY

USD/JPY is still on the upward path even though it was bearish last week. The pair is likely to test the 150.00 point again where a bearish reaction is likely to occur again. If the pair experiences a strong bearish rejection and a lower swing low point is formed, it can be said that there has been intervention by the BOJ and the pair can start to move down.

Today’s critical levels to watch:

Support: 147.00, 145.00, 141.00

Resistance: 150.00

AUD/USD

AUD/USD is moving up and is currently near the previously formed swing low point. The pair has the opportunity to bounce down and continue its bearish trend. However, if the pair is still moving up then the 0.6500 point is the target for the increase as well as resistance that needs to be penetrated for a long-term bullish reversal.

Today’s critical levels to watch:

Support: 0.6170, 0.6000

Resistance: 0.6500, 0.6700, 0.6750, 0.6820, 0.7000