USDX (USD Index)
U.S dollar index bearish pressure managed to print new lower low, but the bearish situation does not last long. The index has returned above the opening level, and it looks like the sideways situation will continue until inflation data release. Traders might want to wait until the data release to determine next movement. In the long-term, we expect the index to continue the bearish trend and print new lower swing low. On the upside, a close above 100.00 will cancel or delay the bearish outlook.
EUR/USD
EUR/USD closed above the 1.1710 level, but immediately lose the bullish pressure. The pair might trade near the level for now and wait the reactions after inflation data release. On the upside, a new higher swing high will confirm the continuation of bullish trend. On the lower side, 1.1580 is the nearest support level to watch. A breakout and close below 1.1300 will cancel bullish outlook.
Today’s critical levels to watch:
Support: 1.1580, 1.1500, 1.1360, 1.1300
Resistance: 1.1710, 1.1820
GBP/USD
GBP/USD made a bullish attempt and get rejected near the 1.3600 resistance level. No breakout from the 1.3450 – 1.3600 area yet, but it looks like the bull has the upper hand. Traders will wait for a breakout from the range to confirm the next direction. Under the current situation, traders who have no long positions will continue to stay flat.
Today’s critical levels to watch:
Support: 1.3450, 1.3330, 1.3300, 1.3250, 1.3125, 1.3050, 1.3000
Resistance: 1.3600, 1.3800, 1.4000
USD/JPY
USD/JPY made a bearish attempt, but the bull immediately recovers the pair to the opening level. A fake breakout triggered before the U.S. inflation data release. It could become a bullish reversal, however, the actual movement will happen after the news announcement. Traders might want to wait until the announcement to get better confirmation.
Today’s critical levels to watch:
Support: 145.00, 142.00,
Resistance: 149.20, 150.00, 151.00
AUD/USD
AUD/USD on the path upward to target the top of broadening pattern. There is a bullish attempt, but the bear immediately push the pair down below the opening level. No confirmation yet for bearish reversal. We maintain a bullish outlook and expect the pair to continue upward. However, if bearish correction happen, then the 0.6500 level is the support level to watch.
Today’s critical levels to watch:
Support: 0.6350, 0.6250, 0.6000
Resistance: 0.6500, 0.6700