USDX (USD Index)
U.S dollar index maintains its position above the daily SMA 200 before next week’s U.S. election. The bullish movement of the index was accompanied by an increase in the U.S. treasury yield. At the current time, we will continue waiting for the index reactions above the daily SMA 200. If the index starts moving lower and close below the daily SMA 200 then there is a chance of a bearish reversal. Without any bearish sign, the index might continue the bullish movement to test the top trendline.
EUR/USD
EUR/USD is trading below the daily SMA 200 and currently trades near the 1.0800 level. Will the pair resume the bearish movement and print a new lower swing low to continue the bearish trend? Alternatively, will it bounce upward, close above the daily SMA 200, and restart the bullish leg to target a new higher swing high?
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 is trading near the 1.3000 level where it might bounce lower and resume the bearish movement toward the daily SMA 200. Traders will wait for bullish reactions near the current level or near the daily SMA 200. When there is strong bullish reactions, traders could enter long positions, expecting the start of new bullish leg.
Today’s critical levels to watch:
Support: 1.2800
Resistance: 1.3000, 1.3050, 1.3250, 1.3300, 1.3450
USD/JPY
USD/JPY trading upward following the change in the political side of Japan. The biggest party (Liberal democratic party) lost its majority in parliament which put the new PM rule in question. However, the major opposition also has no grip on power with just 6.6%. It seems the market will stay cautious and wait for further development. The yen weakened globally and the trend might continue for a while.
Today’s critical levels to watch:
Support: 150.00, 147.00, 145.00, 142.00, 141.00
Resistance: 155.00
AUD/USD
AUD/USD extended the bearish movement below the daily SMA 200 which opened the path toward 0.6500. If there is no change to the situation then traders will expect a test on the 0.6500. On the upside, if the pair trade upward then the daily SMA 200 will become the resistance level to watch. A bearish rejection from the averages could bring the pair further lower.
Today’s critical levels to watch:
Support: 0.6700, 0.6500
Resistance: 0.6750, 0.6820, 0.7000