USDX (USD Index)
U.S dollar index made a strong bullish close yesterday, and it looks on the verge of continuing the bullish movement. However, there is no bullish continuation and currently the index is slightly lower. We could say no higher swing high printed yet which mean there is chance of bearish reversal. Traders could wait for further confirmation, if the index continues upward to reach 100.00 then it might provide a chance to enter short positions in U.S. dollar.
EUR/USD
EUR/USD closed below 1.1710 support level yesterday, which mean a breakout from 1.1710 – 1.1820 area. There is chance of bearish continuation toward 1.1580, but the pair seems returning to the 1.1710 level. If the pair could reclaim the 1.1710 level and erased all the loss, then we might see rally attempt to retest 1.1820. As long as the pair stay above 1.1580, the bullish trend still intact.
Today’s critical levels to watch:
Support: 1.1710, 1.1580, 1.1500, 1.1360, 1.1300
Resistance: 1.1820
GBP/USD
GBP/USD bounced from the 1.3300 – 1.3330 area and currently has erased half of previous day’s drop. If the pair could add the gain and sharply close above 1.3450 then the bearish situation might be cancelled. On the lower side, 1.3250 and the daily SMA 200 are the major support levels to watch for bounce reactions.
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 upward movement reached the 150.00 level, and it looks stalled. The bull might attempt to breakout above the 150.00 level and continue to test the top of the green box area. We maintain bearish outlook but not planning to add short positions yet. It is better to wait until the bullish movement lose momentum and there is bearish confirmation to start entering short positions.
Today’s critical levels to watch:
Support: 149.20, 145.00, 142.00,
Resistance: 150.00, 151.00
AUD/USD
AUD/USD maintain the position inside the green box area and there is initial bullish reaction. The pair might consolidate inside the green box area and start the upward movement again. Traders who enter long positions will place stop order below 0.6500. On the upside, the 0.6789 – 0.6820 will become a target area to watch.
Today’s critical levels to watch:
Support: 0.6500, 0.6350, 0.6250, 0.6000
Resistance: 0.6700