USDX (USD Index)
The strengthening of the U.S. dollar index occurred again today with the formation of a higher high point. The bullish trend continues ahead of the Fed’s interest rate announcement next week. Traders seem to be preparing for a surprise rate hike that exceeds expectations. If it turns out that the Fed does not raise interest rates or decides to hold back the increase for a while, the situation on the dollar index could turn bearish.
EUR/USD
EUR/USD fell and reached the downside target of 1.0650. The current bearish situation has strong momentum so there is a possibility that a test of the 1.0650 point will last for a while. Traders will now wait for further reaction from this support point before deciding to enter a position. The pair’s rise and closing above the daily SMA 200 point will be a bullish confirmation.
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 continued to weaken below the daily SMA 200. This happened because the dollar index continued to strengthen ahead of the Fed’s interest rate announcement. As long as there is no bullish reaction, traders can now only wait for developments. The return of the pair above the daily SMA 200 will be a strong bullish confirmation after the Fed’s announcement.
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 experienced a little bearish pressure today but the pair did not move far from 147.00. Consolidation is still underway near this point and traders will now wait for further reaction. If the pair can bounce up and form a higher swing high point then the bullish movement can continue towards 150.00. A further decline in the pair could open room for weakness towards 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 was pushed down in yesterday’s trading but managed to bounce and close near its opening point. The pair is moving up today but with limited momentum. The pair’s movement will likely still be bearish as long as there is no close above 0.6500. If the pair is forming a lower swing low point then traders should not enter long positions for a while.
Today’s critical levels to watch:
Support:
Resistance: 0.6500, 0.6700, 0.6750, 0.6820, 0.7000