USDX (USD Index)
The movement of U.S dollar index expected to continue sideway this week and waiting for a trigger to break the 93.00 – 94.00 range. Traders could continue to observe while applying the rangebound trading approach to the USD pairs. We still expect the index to break above 94.00 but need a close above it first.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 21 – 25 August 2017
Technical Analysis
EUR/USD
EUR/USD is continuing its advantage above 1.1710 and showing no intention to let the bear push the pair below it. If the pair could move above 1.1788, it might continue higher to challenge previous swing high at 1.1908. Meanwhile, a close below 1.1710 could push the price to at least 1.1580.
Today critical level to watch:
Support: 1.1712, 1.1700, 1.1642
Resistance: 1.1775, 1.1800, 1.1900, 1.1924
GBP/USD
Volatility dies off slowly on GBP/USD daily chart since the pair reaches daily SMA 200. Traders might want to wait for further candlestick closes to judge where the pair will head to. Will it present a break to continue the bearish pressure since failure to stay above 1.3000? Alternatively, will it bounce and reclaim 1.3000?
Today critical level to watch:
Support: 1.2870, 1.2800
Resistance: 1.2900, 1.2930, 1.3000, 1.3070
USD/JPY
The bear was winning in the previous week after it pushed the pair lower back to the opening level. This week, USD/JPY bear does not take long to continue the pressure on 109.00. It looks like the support level will break this week, and USD/JPY could continue the medium-term bearish trend. 108.10 is the level to watch if 109.00 broken.
Today critical level to watch:
Support: 109.00, 108.10
Resistance: 110.00, 110.50, 111.00, 111.64
AUD/USD
AUD/USD successful reclaim of 0.7875 – 0.7970 area means the pair will move inside it again for a while. Traders could expect ranging movement and make use of the opportunity to trade the range with an upside bias. In the long-term, we still expect the pair could move above 0.8000.
Today critical level to watch:
Support: 0.7900, 0.7875, 0.7834, 0.7750
Resistance: 0.7970, 0.8000