USDX (USD Index)
The bull is on the backfoot this week with four consecutive bearish closes. Fortunately, there is bullish bounce today and U.S dollar index attempting to reach 94.00. However, we think the index will close inside 93.00 – 94.00 area and stay sideline until next week FOMC interest-rate decision.
Today, there is G7 meeting in Canada, expect heated debate as the majority of leader attacking President Trump on the tariff issue.
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
The pair rejected from the flip level 1.1820 and headed lower to 1.1710 today. The rejection happens as the market took the risk from the table before G7 meeting today. EUR/USD might close inside 1.1710 – 1.1820 and set up for the new bearish leg. If the pair closes below 1.1710, then it will confirm the start of the new bearish leg.
Today critical level to watch:
Support: 1.1710, 1.1650
Resistance: 1.1820, 1.1925, 1.2000
GBP/USD
Touch down of 1.3450 happened in the previous day and GBP/USD formed spinning top pattern. The pattern mark indecision of the market and the bear take the lead today by bringing the pair down. Without a change in the situation, we think GBP/USD will close between 1.3300 – 1.3450 and attempt to move lower next week.
Today critical level to watch:
Support: 1.3330, 1.3300
Resistance: 1.3450, 1.3500
USD/JPY
USD/JPY is at the critical moment after the rejection from daily SMA 200 and formation of shoulder-head-shoulder pattern. The pattern is bearish and warrants a strong bearish trend if the neckline (Black trendline) broken downside. Traders could look for short position and watch pair reaction at 109.00.
Today critical level to watch:
Support: 109.00
Resistance: 110.00, 110.50, 111.00
AUD/USD
AUD/USD rejected sharply which make the pair enter a new bearish scenario. On the daily chart, the pair projected to move between two trendlines. The nearest support to watch is 0.7500 – 0.7550 area and nearest resistance are 0.7640 – 0.7690. The bearish pressure might continue in coming weeks as the market prepare for FOMC interest-rate decision.
Today critical level to watch:
Support: 0.7550, 0.7500
Resistance: 0.7600, 0.7640, 0.7690, 0.7750