USDX (USD Index)
U.S dollar index stay sideways even though the U.S. stock market rallying to new record high. Traders are hopeful that a rate-cut will happen after the latest inflation data. Despite the situation, there is no movement in the U.S. dollar index. It means the consolidation might continue until next week FOMC meeting. Traders might want to stay flat or maintain bearish bias for on the U.S. dollar index for now.
EUR/USD
EUR/USD made a bullish close yesterday after bearish attempt below 1.1710. The pair might continue to stick near the 1.1710 level until next week FOMC meeting. As the low keep getting higher, there is chance of bullish continuation to target a new higher swing high. Traders who enter long positions could place a stop order below 1.1580 or previous day’s low.
Today’s critical levels to watch:
Support: 1.1580, 1.1500, 1.1360, 1.1300
Resistance: 1.1710, 1.1820
GBP/USD
GBP/USD mostly sideways inside the 1.3450 – 1.3600 area and there is slight bearish reaction today. No breakout from the range, which mean no change to the situation. We expect the pair to continue consolidation inside the area, and it is better to wait for breakout. As we are nearing FOMC meeting and a rate-cut might happen, it might be better to bet on an increase in the pair.
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 has been sideways for pretty long time, which might trigger an explosive movement after the consolidation ended. We still expect the pair to continue the bearish movement to target 145.00 and lower. Traders who enter short positions will place a stop order above the green box area.
Today’s critical levels to watch:
Support: 145.00, 142.00,
Resistance: 149.20, 150.00, 151.00
AUD/USD
AUD/USD completed the bullish target at the top of broadening pattern. As the target has been completed, there is a chance of bearish correction before continuing upward. On the upside, we expect the pair to target the 0.8700 – 0.8750 area. Shorting is not suggested, it is better to wait for pullback to add long positions.
Today’s critical levels to watch:
Support: 0.6350, 0.6250, 0.6000
Resistance: 0.6500, 0.6700