USDX (USD Index)
The bullish pressure on the U.S dollar index pushed the index higher last week. We have a bearish close at the end of the week which might turn into a bearish correction this week. However, traders might stay sidelined as the market awaits the ECB rate decision this week and the Fed next week. It might be the best decision to stay sideline or wait for a bearish correction to enter long positions in the U.S dollar.
If a bearish correction happens then the U.S dollar index might target the 105.00 level.
EUR/USD.
EUR/USD trade near the parity level without a bearish breakout below it yet. We think a bearish breakout will happen to trigger a stop order below the level. However, if a bullish bounce happens first then traders will wait near 1.0339 for a chance to enter short positions. Without capitulation below the parity level, we think the bearish trend has not ended yet.
Today’s critical levels to watch:
Resistance: 1.0339, 1.0650, 1.0800, 1.0900.
GBP/USD.
GBP/USD continues printing lower low and lower high on the chart. The pair might start a bullish correction toward the 1.2000 – 1.2200 area where traders could consider entering short positions. Traders will continue to avoid long positions until a major bullish pattern is formed on the daily chart.
Today’s critical levels to watch:
Resistance: 1.2000, 1.2100, 1.2200.
USD/JPY.
USD/JPY made another higher high on the chart which means the bullish trend has not stopped yet. The pair could continue the climb as it is supported from the technical and fundamental side. Traders will stick with the same strategy, waiting for bearish correction for a chance to enter long positions near the support level.
Today’s critical levels to watch:
Support: 135.19, 135.00.
AUD/USD.
AUD/USD managed to close above the 0.6750 support level after the pair made a bearish movement below it. The pair will attempt to close above 0.6820 to continue the upward movement. If the pair could close above 0.6820 and print a higher high then there is a chance of a bullish correction toward 0.7000.