USDX (USD Index)
The U.S. dollar index turned bullish again at the end of last week. The bullish situation seems to be continuing for now on a limited basis. Traders will observe the movement of the index ahead of the Fed’s interest rate announcement this month. If a sharp bearish reversal occurs and the index closes below the daily SMA 200 at the end of the month then the direction of the trend could change to bearish.
EUR/USD
EUR/USD closed below the daily SMA 200 and below 1.0800. The pair situation is bearish and there is a risk of continuation of the bearish movement this week. When the pair manages to form a lower swing low point with strong bearish momentum then the decline can continue towards 0.6500. On the other hand, if the pair can return near the daily SMA 200 then there is a possibility that the sideway movement will continue until the Fed’s announcement.
Today’s critical levels to watch:
Support: 1.0650
Resistance: 1.0800, 1.0900, 1.1000, 1.1120, 1.1185, 1.1300, 1.1360
GBP/USD
GBP/USD closed below 1.2625, indicating further weakness. The pair has downside risk towards its daily SMA 200. If the pair can continue its slide then traders will be waiting near the daily SMA 200 for a bullish reaction. When a bullish reaction occurs, it is an opportunity for traders to enter long positions.
Today’s critical levels to watch:
Support: 1.2625, 1.2200
Resistance: 1.2800, 1.3000, 1.3250, 1.3300, 1.3330
USD/JPY
USD/JPY maintains the 145.00 – 147.00 range in last week’s trading. The bullish pressure might occur, and the pair might test the resistance point. Traders will wait for the pair to close outside the range 145.00 – 147.00 for confirmation of the next movement direction. As long as the pair is still inside the area and forming a higher swing high point, the bullish trend will not end yet.
Today’s critical levels to watch:
Support: 145.00, 141.00, 140.00, 139.30, 137.70, 133.00
Resistance: 147.00
AUD/USD
AUD/USD experienced a bearish rejection near 0.6500 at the end of last week. The pair is now at risk of further downside to form lower swing lows. If the pair can go back up and close above 0.6500 then there is still hope for the pair to turn bullish. For now, traders should wait for the pair to return above 0.6500 before planning to enter long positions. Holding short positions is something traders can do as long as there is no close above 0.6500.
Today’s critical levels to watch:
Support:
Resistance: 0.6500, 0.6700, 0.6750, 0.6820, 0.7000