USDX (USD Index)
U.S dollar index climbed with strong momentum as the UK doubled down on its tax cut. It seems the current movement is mostly influenced by the weakness in the Pound sterling. Despite the situation, most major currencies are also down against the U.S dollar today. Traders who have long positions in the U.S dollar will continue to hold the positions for now.
EUR/USD
EUR/USD extending the bearish movement below the parity level. The current situation is bearish and within our expectations. The pair need to sweep stop order levels below parity level before a bullish reversal could happen. Traders will wait for a major bullish reversal before entering long positions.
A close above parity level might become the bullish confirmation to watch.
Today’s critical levels to watch:
Support:
Resistance: 1.0000, 1.0339
GBP/USD
GBP/USD tumbled sharply after the announcement of the tax cut. It seems the bearish situation will continue to shroud the pair and bring it down to test parity level. Traders will wait until the bearish momentum subsided before trying to enter long positions. Similar to the situation of EUR/USD, we might see a sweep below the parity level before the pair change direction.
Today’s critical levels to watch:
Support: 1.1450
Resistance: 1.2000, 1.2100, 1.2200
USD/JPY
USD/JPY building bullish pressure again and will attempt to resume its bullish trend. The pair currently erased the previous week’s loss and will maintain the bullish close near the current level. If the pair start a bearish correction again then traders will wait near the support level for a chance to enter long positions.
Today’s critical levels to watch:
Support: 140.00, 139.30, 135.19, 135.00
Resistance:
AUD/USD
AUD/USD is mostly bearish and extending the bearish movement toward the 0.6500 support level today. Traders who have short positions will continue to hold the positions or take part of the profit. If the pair start a bullish correction then 0.6700 and 0.7000 are the levels to watch for bearish reactions.
Today’s critical levels to watch:
Support: 0.6750, 0.6700
Resistance: 0.6820, 0.7000, 0.7160, 0.7300