USDX (USD Index)
The U.S. dollar index did not move much ahead of the Fed’s interest rate announcement this week. A ranging movement is likely to occur and be followed by a movement with strong momentum. Traders will wait for the reaction after the Fed’s announcement to confirm the direction of the next movement.
EUR/USD
EUR/USD gave a bullish reaction near 1.0650 and is now above Friday’s high. This reaction is a temporary reaction and it is possible that the pair will still be traded not far from 1.0650 ahead of the Fed’s announcement. Will the pair start a bullish trend from 1.0650 and rise above the daily SMA 200 after the Fed announcement? Or will the pair actually fall below 1.0650 and form a lower swing low point? Currently, traders can only wait for further developments.
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 is below the daily SMA 200 and is now trying to hold the positions from further downside. If the pair immediately falls and forms a lower swing low point then the bearish movement will continue. For now, traders will wait for further developments. When the pair can move up and close above the daily SMA 200 then there is a possibility of a bullish reversal.
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 is still moving up but is limited to near 147.00. The pair has not shown any weakness so far so there is no reason to enter a short position. If the pair continues its bullish movement then the 150.00 level will be the target for increases. Meanwhile, if the pair moves down, the 145.00 – 147.00 area will become a consolidation area that traders will focus on.
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 tried to move up towards 0.6500 but the pair experienced a bearish reversal at the end of the week. There is no indication of further rise and also no confirmation of the continuation of the bearish movement. The pair needs a close above 0.6500 to reverse the direction of the current bearish trend. If the pair continues moving down and forms a lower swing low point then the bearish trend will continue.
Today’s critical levels to watch:
Support:
Resistance: 0.6500, 0.6700, 0.6750, 0.6820, 0.7000