USDX (USD Index)
The index printed a pin bar pattern yesterday and there is bearish follow-through in today’s trading session. However, the bearish movement has reversed and the index climbed above yesterday’s high. At the current time, the index might continue its bullish trend and it is better for traders to avoid short positions.
EUR/USD
EUR/USD moves lower and prints another lower low on the chart. Despite the situation, we haven’t seen a major sweep on the stops below the parity level. At the current time, the pair has made recovery and traded back near its opening level. If the pair start moving upward again then traders will remember parity level is a strong level to watch for a reaction.
Today’s critical levels to watch:
Support:
Resistance: 1.0000, 1.0339
GBP/USD
GBP/USD trading upward after the previous day’s bullish reaction. However, the pair lose bullish momentum and traded back near the opening level. We might see another bearish attempt on the 1.1450 support level. As long as the pair continue printing lower low and lower high, traders will continue to avoid entering long positions.
Today’s critical levels to watch:
Support: 1.1450
Resistance: 1.2000, 1.2100, 1.2200
USD/JPY
USD/JPY continues the upward movement and prints a new higher high on the chart. The pair keep moving upward and traders who enter short positions without bearish confirmation will suffer a major drawdown. We think it is not the time to take short positions as the pair continue printing a new higher high and higher low.
Traders better await for bearish correction to enter long positions near support levels.
Today’s critical levels to watch:
Support: 140.00, 135.19, 135.00, 131.47
Resistance:
AUD/USD
AUD/USD moves lower and reaches the 0.6750 support level. The pair has the potential to continue the bearish movement and target a new lower low. If a new lower low is printed then the bearish trend is set to continue. Traders will monitor the pair reaction near the 0.6700 support level next. As long as no lower low is printed, there is a chance a bullish double bottom pattern formed.
Today’s critical levels to watch:
Support: 0.6820, 0.6750, 0.6700
Resistance: 0.7000, 0.7160, 0.7300