USDX (USD Index)
The U.S. dollar index continued its gains in yesterday’s trade with a fairly strong bullish close. The position of the index continues to provide bullish pressure and there is no indication of a bearish reversal. This is in line with the bullish forecast ahead of the announcement of the Fed’s interest rate even though the increase occurred beyond expectations. For now, as long as the index continues to strengthen, traders should not enter short positions on the U.S. dollar. When a sharp reversal occurs and a close below the daily SMA 200 occurs then it is time to enter a short position.
EUR/USD
EUR/USD pushed down below the daily SMA 200 and is now on a downward path towards 1.0650. The pair has not yet formed a lower swing low point on the daily chart so there is still a chance for a bullish reversal. When a bounce from 1.0650 occurs and the pair manages to close above the daily SMA 200, the situation will turn bullish again.
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 weakened below 1.2625 and will now try to continue its weakness towards the daily SMA 200. The situation is bearish but there could still be an opportunity for a reversal near the daily SMA 200. Traders will wait for a strong bullish reaction near the averages for confirmation to enter a long position. In the event of a strong bearish close below the daily SMA 200 then traders should hold off on entering long positions.
Today’s critical levels to watch:
Support: 1.2200
Resistance: 1.2625, 1.2800, 1.3000, 1.3250, 1.3300, 1.3330
USD/JPY
USD/JPY climbed up and closed above 147.00. Now the pair will try to continue strengthening towards the point 150.00. As long as there is no strong bearish rejection and the formation of a lower high and lower low, the situation of the pair will continue bullish. To reverse the direction of the current bullish trend, the pair needs to close below 145.00.
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 continued its bearish trend with the formation of a lower swing low yesterday. Currently, the pair appears to be under bearish pressure and is likely to fall below yesterday’s low point. Traders who have short positions from the resistance point can maintain positions with a stop point above 0.6500 for now.
Today’s critical levels to watch:
Support:
Resistance: 0.6500, 0.6700, 0.6750, 0.6820, 0.7000