USDX (USD Index)
U.S dollar index opened the week slightly higher and will attempt to extend the bullish movement toward a bearish trendline. The upward movement might be sustained after Israel retaliates against Iran. If the war situation escalates, then the index might stay on the bullish track. On the other hand, inflation data and unemployment data will become the major focus on how the recent event influenced it. If inflation continues to turn lower, we might see some bearish reaction in the index.
EUR/USD
EUR/USD closed near the 1.0800 level and currently stabilizing near it. The pair might come under bearish pressure but as long as there is no lower swing low printed then there is a chance of a bullish reversal. Further bearish pressure might push the pair down to target the 1.0650 level. However, if the pair could immediately return above daily SMA 200 then the situation could turn bullish again.
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 weakened below the 1.3000 level and might extend the bearish movement toward the daily SMA 200. The pair situation has not turned bullish yet which means traders will continue waiting near support levels. When there are strong bullish reactions, traders could enter long positions targeting 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 opened higher this week which might indicate a bullish continuation. However, there is no higher swing high printed yet which means the pair might also trade sideways near the current level. No conclusion yet on the pair’s next movement. If the pair manages to print a new higher swing high then the bullish movement could continue. On the lower side, a close below the daily SMA 200 might indicate an initial bearish reversal.
Today’s critical levels to watch:
Support: 150.00, 147.00, 145.00, 142.00, 141.00
Resistance: 155.00
AUD/USD
AUD/USD closed below the daily SMA 200 last week which is not good news for the bull. The pair might attempt to continue the bearish movement toward 0.6500. If the pair could turn higher and close above daily SMA 200 immediately then there is a chance of a bullish reversal. At the current time, it is better to wait for bullish reactions before entering long positions.
Today’s critical levels to watch:
Support: 0.6700, 0.6500
Resistance: 0.6750, 0.6820, 0.7000