USDX (USD Index)
The U.S. dollar index strengthened again even though the Fed did not raise interest rates yesterday. This is due to the possibility that the U.S. economy will not be able to soft-land. Market players will be prepared for inflation to remain at a high point, as well as interest rates. For now, traders will follow bullish developments in the index and wait for a bearish reversal. It is possible that the current bullish reaction is only temporary.
EUR/USD
EUR/USD was pushed down below 1.0650 but the pair managed to recover and is now trading above this support point. The pair will try to bounce from the support point of 1.0650 and start a movement toward the SMA daily SMA 200 point. As long as the pair can continue to maintain its position above 1.0650, there is still a chance for a bullish reversal in the near term.
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 continues its weakness and is now seen heading towards 1.2200. The bearish situation occurs due to uncertain circumstances regarding U.S. interest rates. However, it is possible that the current bearish reaction is only a temporary reaction and the pair could reverse direction. Traders will now wait for a bullish correction towards the daily SMA 200. If the pair can reach that point and fail to close above it then the situation will still be bearish.
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 closed bullish in yesterday’s trading which is confirmation of further strengthening towards 150.00. However, the reversed direction in today’s trading. The pair fell sharply erasing yesterday’s gains. Market players are still digesting the results of yesterday’s Fed meeting and the movement of the pair will likely still be volatile. If the pair falls and closes below 147.00 then a consolidation movement between 145.00 – 147.00 is likely to take place.
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 bounced down from 0.6500 and today there was further weakness in the pair. The current bearish movement opens up the risk of bearish continuation and the formation of a lower swing low point. However, the pair seems to have managed to recover and will try to close near the opening point. As written previously, when the pair manages to rise and close above 0.6500 then the situation will turn bullish in the medium term. The formation of a new swing low point will extend the bearish trend on the pair.
Today’s critical levels to watch:
Support:
Resistance: 0.6500, 0.6700, 0.6750, 0.6820, 0.7000