USDX (USD Index)
The upward trend of U.S dollar index face trouble at 95.00 resistance and result in rejection in the previous week. The index settled at the middle of 94.00 – 95.00 and suggested the possibility of ranging movement between the area. Today, the bull drive the index higher at the opening but experienced selling when European session kick-in.
Overall, the fundamental and technical outlook of the index is bullish, and we think the 95.00 resistance will be broken soon.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 25 – 29 June 2018
Technical Analysis
EUR/USD
EUR/USD upward correction looks will continue today after the pair bounce from the level around 1.1640. On the upside, 1.1710 is the target level for correction and the place to look for a short position. A breakout above the level will cancel current short-term bearish trend.
Today critical level to watch:
Support: 1.1650, 1.1600, 1.1580, 1.1500
Resistance: 1.1710
GBP/USD
GBP/USD limited below 1.3330 and closed the week near 1.3250. Currently, the pair sticks closely to 1.3250 level and showing lack of direction. Will the pair continue moving down from current level or break above 1.3330 by the end of the week?
Today critical level to watch:
Support: 1.3250, 1.3100, 1.3000
Resistance: 1.3300, 1.3330
USD/JPY
USD/JPY at a critical moment as the pair fall to the bottom of the triangle. There is no sign of bounce yet, and the pair might close below the triangle by the end of the day. However, traders might want to hold on placing short position as the downward momentum could reverse and close inside the triangle by the end of the day. A long position on the bullish reaction in the short-term time frame with tight stop-loss might result in a successful trade.
Today critical level to watch:
Support: 109.50, 109.00
Resistance: 110.00, 110.50, 111.00
AUD/USD
AUD/USD secured a bounce in the previous week and closed the price near 0.7450. It is a technical bounce, and the bear might resume bearish trend when the bullish pressure could not surpass 0.7500. There is no reason to look for a long position at the current time. On the other hand, a short position from the resistance shown on the chart has better odds.
Today critical level to watch:
Support: 0.7400, 0.7330, 0.7300
Resistance: 0.7500, 0.7550, 0.7600