USDX (USD Index)
U.S dollar index cleared advance above 94.00 broken resistance and reached the 95.00 mark before turning down to close the week near 94.00. The upward movement is not unexpected following the looming interest-rate decision. Aside from interest-rate, political turmoil in Italy create turbulence in Euro and threaten the unity of the union.
The index expected to maintain upper hand into the Fed interest-rate decision.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 4 – 8 June 2018
Technical Analysis
EUR/USD
No change in EUR/USD direction, the pair expected to bounce from 1.1710 level and continue its downward movement. Traders could observe area between 1.1650 – 1.1710 to determine if the bull could secure a bounce.
Today critical level to watch:
Support: 1.1650
Resistance: 1.1710, 1.1820, 1.1925, 1.2000
GBP/USD
There was no close below 1.3250 in the previous week which leads GBP/USD to a safe area. The pair bounced after 1.3250 test and aimed to reach 1.3450 resistance level. We expect the pair to trade between 1.3250 – 1.3500 until the Fed interest-rate announcement.
Today critical level to watch:
Support: 1.3330, 1.3300
Resistance: 1.3450, 1.3500
USD/JPY
USD/JPY correction is over, and the pair bounced from the black trendline to close above 109.00. It is a bullish reaction. However, the pair needs to close above SMA 200 to prove it will continue the upward path. This week, traders will observe the pair reaction between SMA 200 and 109.00.
Today critical level to watch:
Support: 109.00
Resistance: 110.00, 110.50, 111.00
AUD/USD
Continuous pressure applied by the bear in the previous week, but AUD/USD managed to close above 0.7550 and suggest more buying this week. The pair might retest 0.7550 before advance higher. A close below 0.7500 will cancel the bullish outlook and let the bear resume the bearish trend.
Today critical level to watch:
Support: 0.7550, 0.7500, 0.7450
Resistance: 0.7600, 0.7640