USDX (USD Index)
U.S dollar index bullish correction looks losing the upward momentum. There is bearish reaction, and we could see no new higher swing high printed. It means the bearish structure still intact and we expect bearish continuation. If the index immediately continues the bearish trend, then we could expect formation of a new lower swing low on the chart. There are two more FOMC meeting this year, in October and December.
October meeting should set the sentiment for the rest of year, which we expect bullish for global market and bearish for U.S. dollar index.
EUR/USD
EUR/USD reverse the bearish pressure before it could reach the 1.1710 support level. The pair, trading upward with strong momentum, erased Friday’s loss and will test the 1.1820 resistance level soon. A close above 1.1820 or erasure of three days loss will become the confirmation that the pair will resume bullish trend.
Today’s critical levels to watch:
Support: 1.1710, 1.1580, 1.1500, 1.1360, 1.1300
Resistance: 1.1820
GBP/USD
GBP/USD tested the level near 1.3450 and show bullish reaction. The pair significantly higher but stay inside the Friday’s range. We might see the pair consolidating between 1.3450 – 1.3600 with bullish bias. We maintain the bullish outlook on the pair and suggest traders to keep accumulating for now.
Today’s critical levels to watch:
Support: 1.3450, 1.3330, 1.3300, 1.3250, 1.3125, 1.3050, 1.3000
Resistance: 1.3600, 1.3800, 1.4000
USD/JPY
USD/JPY tested the level near daily SMA 200 and there is bearish reaction. If the pair turn lower, form a new lower swing low, then we might have a confirmed bearish continuation. No change to the latest outlook, on the upside, the nearest resistance levels are 150.00 and daily SMA 200. Meanwhile, a close above the green box area will become confirmation that the trend has turned bullish.
Today’s critical levels to watch:
Support: 145.00, 142.00,
Resistance: 149.20, 150.00, 151.00
AUD/USD
AUD/USD reached our green box area and show bottoming reaction. It is early sign that a bullish reversal might happen. As we mentioned before, traders could use the area to add long positions with stop below the area or latest swing low. If the bullish trend continues, then we expect the pair to climb and target 0.6750 – 0.6820.
Today’s critical levels to watch:
Support: 0.6500, 0.6350, 0.6250, 0.6000
Resistance: 0.6700