USDX (USD Index)

The U.S. dollar index’s bullish correction continues, and the index will soon reach the 102.00 resistance level. We expect a bearish rejection to happen near the resistance level and the index could continue the bearish trend. However, traders will need to monitor the release of U.S. job data at the end of the week. We might see high volatility movement depending on the data result. Further weakness in the job data will pressure the U.S. dollar index. Meanwhile, a stronger number might trigger a breakout above 102.00.

EUR/USD

EUR/USD bearish correction will target the 1.1000 support level and traders will wait for reactions near the level. At the current time, it is better to stay sideline and continue to apply buy weakness strategy. We expect the pair to continue the bullish trend and print a new higher swing high on the chart. However, if bearish pressure extended below 1.1000 then the pair might continue lower to target 1.0900 and daily SMA 200.

Today’s critical levels to watch:

Support: 1.1000, 1.0900, 1.0800

Resistance: 1.1120, 1.1185, 1.1300, 1.1360

GBP/USD

GBP/USD bearish rejection has brought the pair lower and it will target the 1.3000 – 1.3050 area. Traders will wait near the area for bullish reactions. When there is a bullish bounce with strong momentum then it is a signal for traders to add more long positions. Further bearish pressure could happen below the 1.3000 – 1.3050 area but as long as there is no lower swing low printed then the trend will continue bullish.

Today’s critical levels to watch:

Support: 1.3125, 1.3050, 1.3000

Resistance: 1.3250

USD/JPY

USD/JPY slowly moving upward and currently trading near the 147.00 level. The pair might attempt to extend the bullish movement toward the 150.00, daily SMA 200 and 151.80 resistance levels. Traders will wait until the bullish pressure recedes to enter short positions. In the long term, we think the pair will resume the bearish trend and target a new lower swing low.

Today’s critical levels to watch:

Support: 145.00, 142.00, 141.00

Resistance: 147.00, 150.00, 155.00

AUD/USD

AUD/USD shows bullish movement with moderate pressure today. The upward movement erased the loss that occurred on Friday. If the pair could extend the bullish movement and print a new higher swing high then the bullish trend could immediately continue. On the lower side, traders will continue to use support levels such as 0.6750, 0.6700, and daily SMA 200 as places to enter long positions.

Today’s critical levels to watch:

Support: 0.6750, 0.6700, 0.6500

Resistance: 0.6820, 0.7000