USDX (USD Index)
The bullish trend of the U.S dollar index resumed after the bounce from the level near 107.50. At the current time, the index is moving upward with strong bullish momentum. Traders better avoid short positions in the U.S dollar until a new lower low and lower high is printed on the chart. Despite the bullish situation, we think the upward movement will be limited until this month’s FOMC meeting.
EUR/USD
EUR/USD trading lower with strong bearish momentum toward the parity level. It seems the bear trying to seize control and print a bearish close below the parity level. If the bull could maintain the level and stage a rally from it then EUR/USD could continue upward to test the 1.0339 resistance level.
Today’s critical levels to watch:
Support: 1.0000
Resistance: 1.0339
GBP/USD
GBP/USD is under bearish pressure following the higher-than-expected inflation number. We might see another test on the 1.1450 support level. Despite the situation, traders better await a bullish correction toward the resistance level for a chance to enter short positions. If the pair print a new lower low then traders will prepare for a bearish continuation.
Today’s critical levels to watch:
Support: 1.1450
Resistance: 1.2000, 1.2100, 1.2200
USD/JPY
USD/JPY is mostly bullish without major bearish corrections. The pair started a bearish correction last week but could not reach the nearest support level. Traders who take short positions might suffer loss as the pair continue moving upward. It is better to wait for the bearish correction to reach the support level and print a bullish reaction before entering long positions.
Today’s critical levels to watch:
Support: 140.00, 139.30, 135.19, 135.00
Resistance:
AUD/USD
AUD/USD return below the 0.6820 support level today. The pair is under bearish pressure and might retest the 0.6750 support level. We think the bearish trend will continue but it might need higher upward movement before the actual bearish movement. On the upside, traders will wait near 0.7000 for a chance to enter short positions when a bearish reaction happens.
Today’s critical levels to watch:
Support: 0.6820, 0.6750, 0.6700
Resistance: 0.7000, 0.7160, 0.7300