The US index continues to surge for the past two days in response to Federal Reserve interest rate hike by the end of 2015, however, as we mentioned before, we can not be sure whether Fed will increase the interest rate this year or next year. Meanwhile, the top pattern of the US index hasn’t been broken yet, that is t say, we are not confident that the USD will continue to rise. Only the US index rises to 97.00 can the top pattern be broken, which also indicates that the Federal Reserve interest rate hike is approaching.
EUR/USD
Since the EUR/USD pair is in a bearish trend, we are buyers of put option aiming for 1.0980-1.1027. Call options can be purchased when it hits 1.0811. We should notice there could be a pullback when it drops down to 1.1087 in the morning session.
Support:1.1027~1.0980/1.0811
Resistance:1.1173/1.1214/1.1250
GBP/USD
The bearish sentiment of the GBP/USD pair is escalating that offers us opportunity of buying put options. A weak support is found at 1.5328 with call options buying opportunity. During the session today, put options can be ended between 1.5250 and 1.5282.
Support:1.5328/1.5282/1.5162
Resistance:1.5450/1.5471/1.5500
USD/JPY
Seen from the 4-hour chart, the USD/JPY pair has The USD/JPY pair continues to drop down but finds enough support at 120.00. We believe it should be traded at sideways that we like buying call options or wait and see. Put options can be purchased if it drops below 119.825.
Support:120.00/119.825/119.00
Resistance:120.42/120.82/120.976
[Tips]
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