USDX (USD Index)
U.S dollar index was under pressure but it seems the market turned uncertain about the global situation. The Fed’s decision to cut interest rates should be greeted with optimism but it also brought worry on the job market. Some traders argue that the situation could signal an upcoming recession. Despite the situation, we think the U.S. dollar index is on the path lower to target the level below the 100.00 handle. As mentioned before, traders will use each bullish correction in the index as a chance to add short positions.
EUR/USD
EUR/USD stays limited below the 1.1185 level and no higher swing high printed on the chart yet. The pair is in a bullish trend but it seems hesitant to continue the upward movement. Trader seems waiting for the chance to break above 1.1185 and a few bearish movements could happen. Traders will wait near the support level for a chance to add long positions while waiting for a bullish breakout to happen.
Today’s critical levels to watch:
Support: 1.1000, 1.0900, 1.0800
Resistance: 1.1120, 1.1185, 1.1300, 1.1360
GBP/USD
GBP/USD extended the bullish movement today and printed a new higher swing high. However, the pair lost bullish pressure and pushed back below the opening level. It seems the pair might close the week near 1.3250 and attempt to build more bullish pressure in the upcoming week. Traders will continue to hold long positions and make use of each bearish correction in the pair as a chance to add long positions.
Today’s critical levels to watch:
Support: 1.3125, 1.3050, 1.3000
Resistance: 1.3250
USD/JPY
USD/JPY bullish correction continues with 145.00 and 147.00 as upward targets. Traders will wait for bearish reactions near both resistance levels for a chance to enter short positions. However, if a bullish breakout above 147.00 happens then the direction of the pair might continue to be bullish for the short-medium term. We still think the pair will resume the bearish trend and print a new lower swing low on the chart.
Today’s critical levels to watch:
Support: 142.00, 141.00
Resistance: 145.00, 147.00, 150.00, 155.00
AUD/USD
AUD/USD closed near 0.6820 yesterday which signals further bullish movement in the pair. Today, the pair continued the upward movement but was rejected from the 0.6820 resistance level. We might see the pair close the week inside the 0.6750 – 0.6820 area which means traders could continue to accumulate long positions for now. When the pair breakout and closes above 0.6820, it is the time that traders get bullish continuation confirmation.
Today’s critical levels to watch:
Support: 0.6700, 0.6500
Resistance: 0.6750, 0.6820, 0.7000