USDX (USD Index)
U.S dollar index formed a bearish close yesterday, erasing all of the Wednesday gains, and might continue lower to test the daily SMA 200. If the index could close below the daily SMA 200 at the end of the week, traders could expect a bearish continuation in the coming week. Traders will closely monitor the index reactions near the daily SMA 200. If a bullish bounce happens then there is a chance of continuation to test the bearish trendline.
EUR/USD
EUR/USD bounced from the 1.0800 level yesterday and might extend the bullish movement toward the daily SMA 200 today. If the pair could close the week above the daily SMA 200 or 1.0900, traders could expect a bullish continuation next week. However, if the pair is back under bearish pressure and prints a new lower low then the bearish trend might continue toward 1.0650.
Today’s critical levels to watch:
Support: 1.0800, 1.0650
Resistance: 1.0900, 1.1000, 1.1120, 1.1185, 1.1300, 1.1360
GBP/USD
GBP/USD made a bullish close yesterday which means no continuation toward the daily SMA 200. On the upside, if the pair could close above 1.3000 before the end of the week, then the trend might reverse. Traders will monitor the pair movement between daily SMA 200 and 1.3000 for now. We still expect the pair to continue the bullish trend and target a new higher swing high.
Today’s critical levels to watch:
Support: 1.2800
Resistance: 1.3000, 1.3050, 1.3250, 1.3300, 1.3450
USD/JPY
USD/JPY closed the day lower near 151.80 and daily SMA 200. As mentioned before, if the pair falls below the daily SMA 200 and closes below 150.00 then the bearish trend might resume. Traders will monitor the weekly close of the pair to get confirmation on where the pair will move next. A major bullish bounce and a new higher high will cancel the bearish outlook.
Today’s critical levels to watch:
Support: 150.00, 147.00, 145.00, 142.00, 141.00
Resistance: 155.00
AUD/USD
AUD/USD stuck near the daily SMA 200 right now and will continue testing the level. Will the pair bounce from it, form a new higher swing high to reverse the bearish trend? Alternatively, will it continue the bearish movement, close below the daily SMA 200, and confirm the long-term bearish trend? Under the current situation, traders will wait for the weekly close to get more confirmation.
Today’s critical levels to watch:
Support: 0.6700, 0.6500
Resistance: 0.6750, 0.6820, 0.7000