USDX (USD Index)
The U.S dollar index is back under bearish pressure today and will soon test the latest swing low. The index is also near the 100.00 handle and ready to test it. If a bearish breakout and close below 100.00 happen then the index will continue the bearish trend. We think consolidation will continue for now, but we are still expecting a bearish breakout. On the upside, the 102.00 resistance level is the place traders could use to add more short positions in U.S. dollar.
EUR/USD
EUR/USD closed lower yesterday but no lower low was printed on the chart. The pair immediately reversed the bearish movement and turned higher today. It seems a test on the 1.1185 resistance level will happen again soon. Traders will continue to hold long positions while expecting a breakout and close above the level. As mentioned before, if the pair start another bearish correction then traders could continue to add long positions near support levels.
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 moving upward with moderate bullish pressure above the 1.3300 – 1.3330 area. The pair will continue the bullish movement toward the 1.3450 resistance level. If the pair started a bearish correction after reaching the level then 1.3250 is the major support level where bullish reactions could happen. Traders will continue to maintain a bullish outlook in the pair as the trend has turned bullish for the long term.
Today’s critical levels to watch:
Support: 1.3300, 1.3250
Resistance: 1.3450
USD/JPY
USD/JPY reached a level near 145.00 and produced a bearish reaction. If the pair resumes the bearish movement from the current level then we could expect a new lower swing low on the daily chart. On the upside, a close above 147.00 could turn the trend bullish for the medium term. As long as the pair continues printing new lower swing low and lower swing high, there is no reason to turn bullish yet.
Today’s critical levels to watch:
Support: 142.00, 141.00
Resistance: 145.00, 147.00, 150.00, 155.00
AUD/USD
AUD/USD launched upward above the 0.6820 resistance level with strong bullish momentum. The pair is in a bullish run and no stopping it now. Under the current situation, it is better to continue to hold long positions with a stop below 0.6675 or the latest swing low. Traders will use each bearish correction in the pair as a chance to add more long positions. The 0.6820 or the previous broken swing high is the level to watch.
Today’s critical levels to watch:
Support: 0.6700, 0.6500
Resistance: 0.6750, 0.6820, 0.7000