USDX (USD Index)

U.S. Dollar Index staged a strong breakout above the 100.00 handle following the FOMC meeting. The overall direction has now shifted upward, establishing a new higher high. It seems the market is anticipating that another rate hike could happen this year, which would push the index even higher. Nevertheless, traders should watch the weekly closing level; observing how the market moves for the rest of the week as it digests the news will provide better trend confirmation.

EUR/USD

EUR/USD pair broke below the critical 1.1500 level and is now on a path lower following the news. However, the pair is currently in the process of forming a higher swing low. As long as price action manages to stay above the previous swing low of 1.1325, the technical chances still favor a broader bullish scenario.

Today’s critical levels to watch:

Support: 1.1360, 1.1300

Resistance: 1.1500, 1.1580, 1.1710, 1.1820, 1.2000, 1.2070

GBP/USD

GBP/USD faced heavy selling pressure, dropping below both 1.3450 and its daily SMA 200. The pair might continue its downward trajectory in the near term, and traders will need to monitor the price movement closely. The 1.3272 swing low will become the next major downside focus. Immediate recovery above the 1.3450 and daily SMA 200 is bullish confirmation.

Today’s critical levels to watch:

Support: 1.3330, 1.3300, 1.3250

Resistance: 1.3450, 1.3600

USD/JPY

The bullish correction on USD/JPY continues to play out. As mentioned in previous updates, the best approach right now is to observe the market and wait until this bullish correction is fully completed before looking for an opportunity to enter short positions.

Today’s critical levels to watch:

Support: 155.50, 154.00, 150.00

Resistance: 158.89

AUD/USD

Today’s critical levels to watch:

Support: 0.7000, 0.6820, 0.6750, 0.6700, 0.6600

Resistance: 0.7160, 0.7300, 00.7330